The price of petrol on Sunday was raised by 50 paise per liter and diesel by 55 paise, taking the total rate increase since the resumption of the daily price revision less than a week back to Rs 3.70-3.75 per liter.
Petrol in Delhi will now be priced at Rs 99.11 per liter as compared to Rs 98.61 previously while diesel rates have increased from Rs 89.87 per liter to Rs 90.42, according to the state fuel retailer’s price notification.
Rates have been raised nationwide and vary from state to state depending on local tax incidents.
This is the fifth price increase since the four -and -a -half -month termination of the rate review on March 22nd. In all four previous incidents, prices have been raised by 80 paise per liter – one of the steepest day increases since the daily price revision was introduced in June 2017.
Overall, the price of petrol has gone up by Rs 3.70 per liter and diesel by Rs 3.75 in six days.
Prices have been frozen since November 4 ahead of assembly elections in states like Uttar Pradesh and Punjab-a period in which the cost of raw materials (crude oil) soared to about USD 30 a barrel.
Congress and other opposition parties have criticized the government for the price hike by saying it has added to the burden of ordinary people who are swaying under general commodity price hikes.
The guaranteed retail price increase from the 137 -day rise in crude oil prices from around USD 82 a barrel to USD 120 was huge but state -owned fuel retailers Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) ) continue the required improvement in stages.
Moody’s Investors Services last week noted that state retailers together lost around USD 2.25 billion (Rs 19,000 crore) in revenue due to maintaining petrol and diesel prices during the election period.
Oil companies “need to raise diesel prices by Rs 13.1-24.9 per liter and Rs 10.6-22.3 per liter for petrol (petrol) at a base oil price of USD 100-120 per barrel,” according to the Equity Institutions Box.
CRISIL research said a Rs 9-12 per liter increase in retail price would be required to fully pass an average of USD 100 per barrel of crude oil and a Rs 15-20 per liter increase if the average crude oil price rises to USD 110 -120.
India is 85 per cent dependent on imports to meet its oil needs and therefore retail rates adapt to global movements.