Fuel prices resurge after 3-day break

This picture has been used for representational purpose

Country's petrol and diesel prices continued its northward march on Saturday, after a three-day break, taking its retail rates to unprecedented levels and burning holes in the consumers pockets. Oil marketing companies raised the pump price of petrol and diesel by 24 paise and 15 paise per litre on Saturday. With this, petrol is now priced at Rs 91.17 a litre and diesel Rs 81.47 a litre in the capital.

Across the country as well the petrol and diesel prices increased between 20-30 paise per litre depending on the level of local duty at the state level. Sources in OMCs said that price rise on Saturday followed movement in product price in global markets. The crude oil is also on boil with benchmark Brent crude still above $66 a barrel now. It was less than $60 a barrel just a few days back.

Petrol and diesel prices have been rising continuously since February 9. In the 14 increases since then, the prices have gone up by Rs 4.22 per litre for petrol and Rs 4.34 a litre for diesel in Delhi. The increase in the previous weeks has taken petrol to cross historic high levels of Rs 100 a litre in several cities across the country.

In Mumbai, petrol prices is just Rs 2.4 per litre short at Rs 97.57 a litre (from the three digit mark of Rs 100 per litre for the very first time ever). Diesel prices in the city is closing in on Rs 90 a litre (Rs 88.60 a litre). In all other metros, petrol is over Rs 90 a litre mark while diesel is well over Rs 80 a litre. Premium petrol crossed Rs 100 per litre mark in several cities of Rajasthan, Madhya Pradesh and Maharashtra a few days back.

Since fuel prices are benchmarked to a 15-day rolling average of global refined products' prices and dollar exchange rate, pump prices can be expected to remain northbound over the next few days even if crude price stabilises. The petrol and diesel prices have increased 26 times in 2021 with the two auto fuels increasing by Rs 7.46 and Rs 7.60 per litre, respectively so far this year. Oil companies executives said that petrol and diesel prices may increase further in coming days as retail prices may have to be balanced in line with global developments to prevent OMCs from making loss on sale of auto fuels.

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