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New Delhi: Petrol and diesel prices were hiked again on Sunday to hit new record highs across the country, but top government officials insisted that oil companies cut the entire gamut from international oil and gas growth to a three-year high. The hike has not passed and has ensured the drying up of pumps like the UK has not been seen anywhere in India.
According to the price notification of state-owned fuel retailers, the price of petrol was hiked by 25 paise per liter and diesel by 30 paise for the third consecutive day.
Due to this, the price of petrol in Delhi rose to an all-time high of Rs 102.39 per liter and in Mumbai Rs 108.43. Diesel prices also touched a record high of Rs 90.77 in Delhi and Rs 98.48 in Mumbai.
Prices vary from state to state depending on the incidence of local taxes.
Petroleum Secretary Tarun Kapoor said oil companies are taking their decision on aligning retail rates with cost, but they are ensuring that excessive volatility is avoided.
“We are monitoring the situation and trying to ensure that the impact of global volatility is substantially mitigated,” he said.
The basket of crude oil bought by India has reached a three-year high of $ 76.71 per barrel. International prices of petrol, against which local rates are benchmarked, have risen from USD 85.10 a barrel to USD 87.11 in just one day, while diesel has risen from USD 85.95 a barrel to USD 87.27.
Another official with direct knowledge of the matter said this sudden rise in international oil prices was followed by global production disruptions, but such an increase is not affecting the full increase in essential retail rates.
“Just look at the LPG rates. They have risen from US$665 to US$797 in a month, but oil companies have not passed that increase,” he said, adding that state-owned companies were absorbing too much volatility.
The growth, he said, has been “mild to moderate”.
“Some people are making a great deal out of the 62 percent hike in natural gas prices. But if you look at the earlier rates, the US$1.79 per million British thermal unit was unusually low and well below the cost. They have now risen to $2.9. They are still below the cost of production of $3.5 per mmBtu and certainly less than the $4.2 price that prevailed in India a decade ago.
Naturally, an increase in the price of natural gas will guarantee an increase in the price of CNG, but the increase is again being curtailed there too, he said, adding that the LNG price in the spot market internationally rose to an unprecedented 35 percent last week. increased to USD.
“Compare what is happening across the world, we have managed the situation well,” the official said. “Some developed countries like the UK have seen petrol pumps dry up, but you would not have heard of such a situation anywhere in India. Our oil companies are not only bringing down retail prices but also ensuring uninterrupted supply.”
Officials said that India believes that the situation at the international level is temporary and unusual and that things should stabilize in the next few days and weeks.
Its fifth hike in rates in less than a week has sent petrol prices above Rs 100 in most major cities of the country.
Similarly, the eighth increase in prices in 10 days has increased diesel prices by above Rs 100 in several cities of Madhya Pradesh, Rajasthan, Odisha, Andhra Pradesh and Telangana.
State-owned Indian Oil Corp (IOC), Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL) on September 24 resumed daily price revision after international oil prices hit a three-year high. Global benchmark Brent crude is trading above $78 per barrel.
There have been eight price hikes since September 24, with diesel rates increasing by 2.15 paise per litre. Petrol price has increased by Rs 1.25 per liter in five installments this week.
When international oil rates fell in July and August, retail prices of petrol and diesel were reduced by Rs 0.65 and Rs 1.25 per liter in the Delhi market.
Earlier, between May 4 and July 17, the price of petrol was increased by Rs 11.44 per liter. During this, the price of diesel was increased by Rs 9.14.
India is dependent on imports to meet about 85 per cent of its oil needs and therefore benchmarks local fuel rates to international oil prices.
read also: Fuel prices near record levels in India as petrol, diesel rates hike again
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