With the international crude oil prices taking a sharp rebound and weak rupee-dollar exchange rate, India’s petrol and diesel rates continued to rise for the fifth-day in a row on Thursday.

In the past five days, i.e. since Sunday, petrol prices increased by Rs 2.74 and diesel by Rs 2.83 per litre.

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On Thursday, with effect from 6.00 am, the fuel prices were hiked by 60 paise per litre.

In three of the last five days, the prices have risen by a sharp 60 paise per litre while it increased by around 40 and 55 paise per litre on Tuesday and Wednesday.

These rise of prices in India is backed by the rise of international crude oil rates that is hovering at $40.43 abarrel, more than double from April levels.

As per the local media report, fuel price rise could continue for another week or 10 days as global crude prices are firming up with a pick up in demand following opening up of economies across the globe post Covid-19 related lockdown.

What adds to the worry that the current retail prices have already jumped more than the pre-corona levels.

In the national capital, the retail price of both petrol and diesel had increased by 60 paise per litre to Rs 74 and Rs 72.22 per litre respectively on Thursday.

In other cities, like Kolkata, Mumbai and Chennai petrol prices was at Rs 75.94, Rs 80.98 and Rs 77.96 respectively.

Speaking of diesel prices, it was at Rs 68.17 in Kolkata; Rs 70.92 in Mumbai and Rs 70.64 in Chennai, as per Indian oil website.

Reports issued in April had said that daily price revision may begin in June and retail prices of petrol and diesel could go up to Rs 5 a litre in phases.

A report by the Care Ratings showed that government is collecting approximately 270 per cent taxes on the base price of petrol and 256 per cent in the case of diesel. This was done after the excise duty was increased by Rs 10 per litre on Petrol and Rs 13 per litre on diesel.

This steep rise in excise duty has resulted without resultant increase in petrol and diesel prices, had substantially brought down its marketing margins from record high level of Rs 12-18 per litre. If the fuel prices are not increased, especially when the global crude prices are rising, it would start incurring losses that will get steeper.

As per the data, petrol and diesel prices were last revised under the dynamic pricing policy on March 16. Keeping the nationwide lockdown into consideration and to increase states’ revenues several state governments revised and raised taxes on transportation fuel.

This revision of oil prices would depend on the international oil prices at the time. But with the Unlock-1 into action, the demand of petrol and diesel have increase drastically, which could further help to maintain check on prices.