Fuel prices were hiked across metros for the second consecutive day on October 1. With this second hike, price of petrol and diesel have reached record levels across the country, negating the earlier price cut.
The price of petrol was hiked to Rs 101.89 a litre in Delhi and to Rs 107.95 per litre in Mumbai, according to a price notification of state-owned fuel retailers. Diesel rates increased to Rs 90.17 a litre in Delhi and Rs 97.84 in Mumbai.
This is the third price increase in petrol since the ending of a three-week-long hiatus in rate revision and the fifth in the case of diesel.
In Kolkata, people have to pay Rs 102.47 for litre of petrol and Rs 93.27 for diesel; while petrol price in Chennai was hiked to Rs 99.58 from earlier Rs 99.36 a litre, and diesel costs Rs 94.74 per litre in Tamil Nadu’s capital.
Petrol and diesel prices differ from state to state depending on the incidence of local taxes.
International oil prices are at three year high with global benchmark Brent trading at $78.64 per barrel.
This spurt in global rates led state-owned Indian Oil Corporation (IOC), Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL) to resume daily price revisions on September 24, ending the pause in rates that came into effect from September 5.
In five price increases since September 24, diesel rates have gone up by 1.25 paise per litre, negating all of the price reductions that happened between July 18 and September 5.
When international oil rates fell in July and August, retail prices of petrol and diesel in the Delhi market were reduced by Rs 0.65 per litre and Rs 1.25 per litre, respectively.
Prior to that, petrol price was increased by Rs 11.44 a litre between May 4 and July 17; and diesel rate had gone up by Rs 9.14 during this period.
The price hike during this period pushed petrol prices above the Rs 100 per litre mark in more than half of the country, while diesel crossed that level in at least three states.
India is dependent on imports to meet nearly 85 percent of its oil needs and so benchmarks local fuel rates to international oil prices.