A mixed bag
The Indian economy is currently at a critical juncture. The Centre’s recent monthly economic report paints a picture that’s both…
Petrol and diesel prices are being hiked continuously in major cities and are becoming expensive day by day. The latest price rise marks the sixth straight day of the increase since state-owned oil companies returned to their normal schedule of daily reviews following a 12-week pause.
Petrol prices have increased by Rs 3.31 and diesel by Rs 3.42 per litre since Sunday. In three of the last five days, the prices have risen by a sharp 60 paise per litre, while it increased by around 40p and 55p per litre on Tuesday and Wednesday respectively.
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On Friday these prices jumped by 57-59p.
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With effect from 6 am, the prices of petrol was increased by 57 paise per litre and diesel by 59 paise per litre in Delhi. While the price of petrol was revised to Rs 74.57 per litre in the national capital from Rs 74 per litre the previous day, the diesel rate was increased to Rs 72.81 per litre from Rs 72.22 per litre, as per the Indian Oil Corporation website.
Reports suggest that the rise in fuel prices are likely to continue for another week or 10 days as global product prices are forming up with a pick up in demand following opening up of economies across the globe post Covid-19 related lockdown.
Even global crude price has doubled to about $40 a barrel since April.
The increase in retail prices on Friday has been made under the dynamic pricing system for daily revision of fuel prices which OMCs resumed after over 83 days break during the lockdown period.
In the national capital, the retail price of petrol increased by 57 paise and diesel by 59 paise per litre to Rs 74.57 and Rs 72.81 per litre respectively.
In other cities, like Kolkata, Mumbai and Chennai petrol prices was at Rs 76.48, Rs 81.53 and Rs 78.47 respectively.
Speaking of diesel prices, it was at Rs 68.70 in Kolkata; Rs 71.48 in Mumbai and Rs 71.14 in Chennai, as per Indian oil website.
The increase in retail price under daily price revision would largely depend on prevailing oil prices and global oil market at the time to determine the retail price.
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