Diesel price hiked again
Auto fuel prices remained stable in the country amid volatility in global oil prices, but oil marketing companies on Sunday marginally increased the pump price of diesel, keeping petrol prices stable. According to Indian Oil Corporation, the country’s largest fuel retailer, diesel prices rose by 25 paise to Rs 89.07 per liter in the national capital on Sunday, while petrol prices remained unchanged for the 21st day in a row.
Diesel price was also hiked by 20 paise per liter on Friday, based on global price movement of the fuel, oil marketing company sources said.
Oil Marketing Companies have preferred to keep their watch prices on the global oil situation before making any revision in the prices.
OMC’s wait-and-watch plan has come to the relief of consumers as there has been no revision during the period when crude oil prices had risen due to reduction in US production and inventory and pick-up in demand. This would have required an increase of about Re 1 in the price of petrol and diesel.
Petrol price in Mumbai was stable at Rs 107.26 per liter while that of diesel increased to Rs 96.68 per litre.
Petrol prices across the country also remained stable on Sunday, while diesel prices increased marginally.
Fuel prices are hovering at record highs due to 41 increase in its retail rates since April this year. It dropped on a few occasions but remained largely stable.
On Sunday, global benchmark Brent crude rose above $78 a barrel. Oil rates are up 2 percent for the week and this is the fifth weekly gain. Since September 5, when the prices of both petrol and diesel were revised, the price of petrol and diesel in the international market is around $6-7 per barrel higher than the average prices during August.
Under the pricing formula adopted by the oil companies, the rates of petrol and diesel are to be reviewed and revised on a daily basis. The new prices are effective from 6 am
The daily review and revision of prices is based on the average price of the benchmark fuel in the international market and foreign exchange rates over the past 15 days.
However, volatility in global oil prices has prevented OMCs from following this formula in its entirety and revisions are now being carried out with longer intervals. It has also prevented companies from increasing fuel prices whenever there is a mismatch between the fuel delivered globally and the pump price of the fuel.
(with IANS inputs)
Read also | Petrol prices not coming down as states don’t want it under GST: Hardeep Singh Puri
.