In one of the steepest increase since state-run oil marketing companies (OMCs) resumed daily rate revision after an 18-day hiatus, diesel price on Friday (May 21) was hiked by 29 paise per liter and petrol by 19 paise after rates were raised for the eleventh time this month. On Thursday, OMCs left the retail prices of auto fuels unchanged across the metros for the second successive day.
Petrol price in Delhi is now at Rs 93.04, while diesel costs Rs 83.80 in the national capital. In Mumbai, petrol is now reported at Rs 99.32 and diesel at Rs 91.01, CNBC-TV18. Over the past 18 days, petrol prices have been increased by Rs 2.64 / liter and diesel by Rs 3.07 / liter. Over the last two days, fuel prices remained unchanged after a surge on May 18.
Auto fuel prices in Mumbai continue to move closer to the Rs 100-mark, with a liter of petrol priced at a record Rs 99.32 after an 18 paise jump over Thursday’s rate, and a liter of diesel at Rs 91.01 (30 paise increase) – an all-time high on Friday. Further, many districts in Maharashtra have petrol prices already crossed the psychological barrier of Rs 100-a-liter.
As per dynamic pricing, OMCs revise the pump prices of petrol and diesel on a daily basis. Plus, transportation fuel prices are dependent on Brent crude oil rates as India imports around 85 per cent of its fuel requirements. Central and state taxes make up for over 61 per cent of the retail price of petrol and about 56 per cent of diesel. The Union government levies Rs 32.9 per liter of excise duty on petrol and Rs 31.80 a liter on diesel.
Many economists are of the view that the inflation rate is bound to climb up as a fallout of a sharp rise in petrol and diesel prices. The cascading effect of diesel price increase would be visible in the form of a hike in freight rates, leading to an increase in prices of many commodities such as FMCG, fruits and vegetables, iron and steel.
On Friday, in the global market, oil went up on expectations of the return of Iranian crude supplies after officials mentioned Iran and world powers made headway in talks to restore a 2015 nuclear deal. Brent Crude oil futures were trading at $ 65.21 per barrel, up 10 cents, or 0.2 per cent, from their last close. West Texas Intermediate (WTI) crude futures jumped by 22 cents, or 0.4 per cent, to $ 62.16 per barrel.