Petrol, diesel prices rise again amid volatility in oil market

The prices of petrol and diesel rose simultaneously again on Tuesday amidst volatility in the global oil prices with benchmark crude increasing to above 80 a barrelAccordingly diesel prices increased by 30 paisa per litre in the national capital to Rs 9107 per litre while petrol rates rose by 25 paisa per litre to Rs 10264 a litre according to Indian Oil Corporation the countrys largest fuel retailerDiesel prices have now increased on nine out of the last 12 days taking up its retail price by Rs 245 per litre in DelhiDiesel prices were raised on Friday by 20 paisa per litre and again by 25 paisa per litre each on Sunday Monday and Tuesday last week and by 30 paisa per litre on Thursday Friday Saturday and Sunday And again by 30 paisa per litre on TuesdayPetrol prices had maintained stability since September 5 but oil companies finally raised its pump prices this week given a spurt in the product prices lately Petrol prices have also risen on six of the previous eight days taking up its primo price by Rs 145 per litreOMCs had preferred to maintain their watch prices on global oil situation before making any revision in prices This is the reason why petrol prices were not revised for last three weeks But extreme volatility in global oil price movement has now pushed OMCs to effect the increaseIn Mumbai the petrol price rose by 25 paisa per litre to over Rs 10867 per litre while diesel rates increased close to Rs 9880 a litreAcross the country as well petrol and diesel increased between 2030 paisa per litre but their retail rates varied depending on the level of local taxesFuel prices in the country have been hovering at record levels on account of 41 increases in its retail rates since April this year It fell on few occasions but largely remained stableAfter rising over three year high level of 80 a barrel earlier this week global benchmark came down to 78 a barrel and now is again up to 81 a barrel while OPEC deciding to stick to its marginal production easing plan and market remaining tightSince September 5 when both petrol and diesel prices were revised the price of petrol and diesel in the international market is higher by around 89 per barrel as compared to average prices during AugustUnder the pricing formula adopted by oil companies rates of petrol and diesel are to be reviewed and revised by them on a daily basis The new prices becomes effective from morning at 6 amThe daily review and revision of prices is based on the average price of benchmark fuel in the international market in the preceding 15days and foreign exchange ratesBut the fluctuations in global oil prices have prevented OMCs to follow this formula in totality and revisions are now being made with longer gaps This has also prevented companies from increasing fuel prices whenever there is a mismatch between globally arrived and pump price of fuelThis story has been sourced from a third party syndicated feed agencies Midday accepts no responsibility or liability for its dependability trustworthiness reliability and data of the text Midday managementmiddaycom reserves the sole right to alter delete or remove without notice the content in its absolute discretion for any reason whatsoever