New Delhi, Jan. 18 (IANS): Petrol and diesel prices rose again by 25 paisa per litre each on Monday after oil marketing companies decided to break their three days pause on price revision in wake enlarging under recovery on sale of the two petroleum products.
The increase in pump price of petrol and diesel came on a day when global oil prices have a glimpse of softening with crude falling below $55 a barrel after almost a week of hovering above that range.
With Monday’s increase, petrol is being sold at INR 84.95 a litre in Delhi from previous day price of INR 84.70 a litre. Similarly, diesel prices also increased to INR 75.13 a litre, up from previous day’s level of INR 74.88 a litre.
Across the country as well pump price of petrol and diesel increased but the quantum of the rise varied from state to state depending on level of taxation on the two petroleum products.
Auto fuel price rise was on hold for last three days after petrol and diesel prices had increased on two successive days last week on Wednesday and Thursday taking gasoline to new record high levels in Delhi and several other places in the country. It had risen on two days in the week prior to last week as well.
OMCs ran out of patience on Wednesday as global crude prices have risen sharply lately taking benchmark Brent crude price to over $57 a barrel now and rising. The rise is primarily on account of Saudi Arabia’s decision on unilateral production cuts to balance oil prices on pandemic affected demand reduction in an oversupplied market.
At INR 84.95 a litre in Delhi, petrol price has already breached the highest level in the national capital this year after October 4, 2018, when the rate had risen to INR 84 a litre.
Petrol price was very close to breaching the all-time high level of INR 84 a litre (reached on October 4, 2018) when it touched INR 83.71 a litre on December 7, 2020. But the march had been halted ever since then with no price revision by the OMCs.
Oil companies executives said that petrol and diesel prices may increase further in coming days as retail prices may have to be balanced in line with global developments to prevent OMCs from making loss on sale of auto fuels.