On Monday, the price of petrol increased by 30 baisas per liter and diesel by 35 baisas, bringing the total price increase in the last week to 4-4.10 rupees per liter.
Petrol in Delhi will now cost 99.41 rupees per liter compared to the previous 99.11 rupees while diesel prices have risen from 90.42 rupees per liter to 90.77 rupees, according to the state’s fuel sellers price notification.
Rates have been increased across the country and vary from state to state depending on the occurrence of local taxes.
This is the sixth price increase since the four-and-a-half month period in the price review ended on March 22nd.
On the first four occasions, prices increased by 80 pounds per liter – the largest one-day rise since the introduction of the daily price review in June 2017. On Sunday, the price of gasoline increased by 50 pounds per liter and diesel by 55 pounds. .
In all, petrol prices increased by Rs 4 per liter and diesel by Rs 4.10.
Prices have been on a freeze since November 4 ahead of council elections in states such as Uttar Pradesh and Punjab – a period during which the cost of raw materials (crude oil) rose by about $30 per barrel.
The rate adjustment was expected shortly after votes were counted on March 10 but was pushed back by two weeks.
The increase in retail prices that is ensured by the rise in crude oil prices during the 137-day shutdown period from about $82 per barrel to $120 is huge, but the state-owned fuel retailers Indian Oil Corporation (IOC) and Bharat Petroleum Corporation Ltd. (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) pass the requested increase in phases.
Moody’s Investors Service said last week that government retailers together lost around US$2.25 billion (Rs.19,000 crore) in revenue due to keeping petrol and diesel prices on hold during the election period.
Oil companies will “need to raise diesel prices by Rs 13.1-24.9 per liter and Rs 10.6-22.3 per liter on gasoline (petrol) at a base crude price of US$100-$120 per barrel,” according to Kotak Institutional Stocks.
CRISIL Research said a retail price increase of Rs 9-12 per liter would be required to pass the full average of $100 per barrel of crude oil and Rs 15-20 per liter if the average price of crude oil rose to $110. -120.
India is 85 percent dependent on imports for its oil needs, so retail prices adjust according to the global movement.
(This story has not been edited by Business Standard employees and is automatically generated from a shared feed.)