Crude oil prices in the international market have risen primarily on account of strong US demand and a weak dollar
In one of the steepest increases since daily price revision was started, the petrol price on Thursday was hiked by 25 paise per litre and diesel by 30 paise as oil companies raised rates for the third straight day to pass on to consumers the increase in international oil prices.
Rates have been increased across the country and vary from state to state depending on the local incidence of taxation (VAT).
Petrol price in Delhi was increased to Rs 90.99 per litre from Rs 90.74 while diesel rates went up to Rs 81.42 a litre from Rs 81.12, according to a price notification by state-owned fuel retailers.
This is the third straight day of increase in petrol and diesel prices since state-owned fuel retailers ended an 18-day hiatus in rate revision during assembly elections in states like West Bengal.
In three days, petrol price has increased by 59 paise per litre and diesel by 69 paise – neutralising most of the reduction that came between March 24 and April 15.
After raising petrol price by a record Rs 21.58 per litre and diesel by Rs 19.18 since the government raised excise duty to an all-time high in March last year, state-owned fuel retailers, IOC, BPCL and HPCL had reduced petrol price by 67 paise a litre and diesel by 74 paise per litre effected between March 24 and April 15.
Oil companies, which have in recent months resorted to an unexplained freeze in rate revision, had hit a pause button after cutting prices marginally on April 15. This coincided with electioneering hitting a peak to elect new governments in five states including West Bengal.
No sooner had voting ended, more oil companies indicated an impending increase in retail prices given firming trends in international oil markets.
Despite the concerns about rising Covid-19 cases in India denting demand, crude oil prices in the international market have risen primarily on account of strong US demand recovery and a weak dollar.
Prices have been on a continuous uptrend since April 27, an industry official said adding crude oil prices are near $70 per barrel mark.
Central and state taxes make up for 60 per cent of the retail selling price of petrol and over 54 per cent of diesel. The union government levies Rs 32.90 per litre of excise duty on petrol and Rs 31.80 on diesel.
In Mumbai, the petrol price was hiked to Rs 97.34 a litre on Thursday from Rs 97.12, while diesel rates were increased to Rs 88.49 from Rs 88.19, the price notification showed.