State-owned oil marketing companies (OMC) on Tuesday raised petrol and diesel prices after more than four months of stable rates.
Accordingly, the increase in selling price, which includes state levies, central excise and cess amongst other factors, came days after an astronomical rise in crude oil prices due to the Russia-Ukraine war.
In New Delhi, the price of petrol and diesel increased by 80 paise per litre.
As per pump prices, diesel now costs Rs 87.47 per litre and petrol Rs 96.21 per litre in the national capital.
The prices had remained unchanged since November 2021 at Rs 86.67 per litre for diesel and Rs 95.41 per litre for petrol.
In the financial capital Mumbai, prices were hiked to Rs 95 per litre for petrol from Rs 94.14 and Rs 110.82 per litre from Rs 109.98.
Till now, fuel prices have been steady since last November when the Centre reduced excise duty on petrol and diesel by Rs 5 and Rs 10 per litre, respectively.
The OMCs revise the transportation fuel cost based on various factors such as rupee to US dollar exchange rate, cost of crude oil and demand of fuel amongst others.
Besides, the final price includes excise duty, value added tax and dealer’s commission.
It was widely expected that the OMCs will revise the current prices due to high crude oil cost.
Lately, crude oil prices have been volatile surging by nearly 35-40 per cent on fear of tight supplies.
An inflationary blow is expected to push up prices of everything, from food items to manufactured goods.