Fuel prices continued to pinch the common man as petrol and diesel rates were hiked yet again on Sunday. Petrol price was increased by 50 paise a liter while diesel rate was surged by 55 paise on March 27.
In the wake of rising crude oil prices amid the Russia-Ukraine war, the oil marketing companies in India resumed the revision of fuel prices on March 22. After a hiatus of over the four-and-a-half month. Since then, the petrol price went up by Rs 3.70 and diesel by Rs 3.75 per liter in just six days.
With the latest revision, a liter of petrol would cost Rs 99.11 per liter in Delhi. A liter of petrol would be available at Rs 113.88 in Mumbai, the highest in any metro city.
In Chennai, you would have to spend Rs 104.90 for a liter of precious auto fuel. Petrol was priced at Rs 108.53 in Kolkata. This was the fifth jump in petrol prices in the last six days.
Rates have been increased across the country and vary from state to state depending upon the incidence of local taxation. This is the fifth increase in prices since the ending of a four-and-half-month long hiatus in rate revision on March 22.
On all the previous four occasions, prices had been increased by 80 paise a liter. The steepest single-day rise since the daily price revision was introduced in June 2017.
The increase in retail price warranted from crude oil prices rising during the 137-day hiatus from around USD 82 per barrel to USD 120 is huge but state-owned fuel retailers Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL), and Hindustan Petroleum Corporation Ltd (HPCL) are passing on the required increase in stages.
For the unversed, petrol and diesel prices in India had remained constant between November 4, 2021, and March 21, 2022. Despite prices of crude oil averaging around $111 per barrel in the first three weeks of March compared to around $82 in early November 2021.
Oil companies did not revise petrol and diesel rates for a record 137 days. Despite prices of crude oil (raw material for producing fuel) rising to USD 117 per barrel compared to around USD 82 in early November. They are now passing on to consumers the required increase in stages.
Moody’s Investors Services on Thursday stated that state-owned fuel retailers Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL), and Hindustan Petroleum Corporation Ltd (HPCL) together lost around USD 2.25 billion ( ₹19,000 crores) in revenue for keeping petrol and diesel prices on hold during the election period.
Oil companies “will need to raise diesel prices by ₹13.1-24.9 per liter and ₹10.6-22.3 a liter on gasoline (petrol) at an underlying crude price of USD 100-120 per barrel,” according to Kotak Institutional Equities.