Petrol and diesel prices were hiked again on on April 2. The 80-paise hike per litre took the total increase in rates in the last 12 days to Rs 7.20 per litre. Petrol in Delhi will now cost Rs 102.61 per litre as against Rs 101.81 previously, while diesel rates have gone up from Rs 93.07 per litre to Rs 93.87, according to a price notification of state fuel retailers.
Rates have been increased across the country and vary from state to state depending upon the incidence of local taxation. This is the 10th increase in prices since the ending of a four-and-half-month long hiatus in rate revision on March 22.
According to a price notification of state fuel retailers, in Delhi, petrol now costs Rs 102.61 per litre as against Rs 101.81 previously, while diesel rate has gone up to Rs 93.87 a litre from Rs 93.07 per litre. In Mumbai, petrol price is at Rs 117.57 per litre against Rs 116.72 litre previously, while diesel price is at Rs 101.79 per litre against Rs 100.94 per litre previously.
In Kolkata, petrol is Rs 112.19 per litre (increased by 84 paise) and diesel is at Rs 97.02 per litre (increased by 80 paise). In Chennai, price of petrol per litre is Rs 108.21 and diesel costs Rs 98.28 per litre.
137-day freeze on petrol and diesel rates ended on March 21
The oil marketing companies (OMCs) started to increase retail fuel prices after four months as international crude oil prices have soared.
The first increase in petrol and diesel prices this year, announced on March 22 was the first hike in 137 days. From November 3, 2021 until March 22, there had been a freeze on fuel prices due to the central government's excise duty cut of Rs 5 a litre on petrol and Rs 10 a litre on diesel and many states also lowering state tax.
Though these measures both by the centre and the state provided relief to customers against the soaring international crude oil prices, it was widely anticipated that there would be a revision in fuel prices after the results for the recent state assembly elections in Uttar Pradesh, Punjab, Uttarakhand, Goa and Manipur were out on March 10.
Increase in crude oil prices likely to keep retail fuel prices high
Supply crunch after sanctions on Russia, dwindling oil stockpiles, and worries about a surge of COVID-19 in China hitting demand, drove the oil rally over the last four weeks.
JP Morgan earlier in its report said for OMCs to revert to normalised marketing margins, retail prices need to increase by Rs 9 a litre or 10 per cent. And, there was a report that in view of the geopolitical crisis, India's domestic prices of petrol and diesel would go up by Rs 15-22 per litre. It was viewed that an excise duty cut may dampen the impact on petrol and diesel prices, but only to an extent.
Brent crude which traded as high as $139 per barrel on March 7 and as low as $98 per barrel on March 15, was at $104.39 a barrel on April 1
Hostilities between Russia and Ukraine, along with sustained demand, is expected to keep global crude oil prices high for some more time. This is likely to have further impact on India as it imports more than 80 percent of oil requirement.
The global markets are impacted as a result of sanctions on Russia, the world's second-largest crude exporter.
Also Read: Russia offers oil to India at steep discount of $35 a barrel to pre-war price
[With PTI inputs]
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