The prices of petrol and diesel rose again on Monday, October 11, completing one full week of increases that have taken the retail rate to record high levels across the country. In the national capital, petrol price rose 30 paise per litre and diesel was hiked by 35 paise per litre. The prices of petrol and diesel have crossed the Rs 100 per litre mark in many states, pinching the common man's pocket.
In Delhi, petrol is now retailing at Rs 104.44 per litre and diesel is available at Rs 93.17 per litre after the latest price revision. On the other hand, in India's financial capital, Mumbai, petrol became costlier by 29 paise per litre and its rate stands at Rs 110.41 the highest across all the four metro cities. Diesel costs Rs 101.03/ litre in Mumbai, a hike of 37 paise.
There has been a constant rise in the prices of petrol and diesel for the past six days and the rates have reached an all time high. The prices of petrol and diesel remained steady on October 4, 2021, but saw a hike after that.
Diesel prices have now increased 15 out of the last 18 days taking up its retail price by Rs 4.55 per litre in Delhi. The price of diesel has increased between 20-30 paise per litre so far, but since Wednesday it has been increasing by 35 paise per litre.
With diesel prices rising sharply, the fuel is now available at over Rs 100 a litre in several parts of the country.
Petrol prices had maintained stability since September 5, but oil companies finally raised their pump prices last week and this week and gave a spurt in the product prices lately. Petrol prices have also risen on 12 of the previous 14 days taking up its pump price by Rs 3.25 per litre.
OMCs had preferred to maintain their watch prices on global oil situations before making any revision in prices. This is the reason why petrol prices were not revised for the last three weeks. But extreme volatility in global oil price movement has now pushed OMCs to effect the increase.
Across the country as well petrol and diesel increased between 30-40 paise per litre but their retail rates varied depending on the level of local taxes in the state.
Crude price has been on a surge rising over three year high levels of over $83.5 a barrel now. Since September 5, when both petrol and diesel prices were revised, the price of petrol and diesel in the international market is higher by around $9-10 per barrel as compared to average prices during August.
Under the pricing formula adopted by oil companies, rates of petrol and diesel are to be reviewed and revised by them on a daily basis. The new prices become effective every day from 6 am in the morning.
The daily review and revision of prices are based on the average price of benchmark fuel in the international market in the preceding 15-days, and foreign exchange rates.
But, the fluctuations in global oil prices have prevented OMCs to follow this formula in totality and revisions are now being made with longer gaps. This has also prevented companies from increasing fuel prices whenever there is a mismatch between globally arrived and pump prices of fuel.