Petrol in Delhi is now £99.11 per liter compared to £98.61 previously, while diesel prices have risen from £89.87 per liter to £90.42.
Petrol in Delhi is now £99.11 per liter compared to £98.61 previously, while diesel prices have risen from £89.87 per liter to £90.42.
The price of petrol rose by 50 paise a liter and diesel by 55 paise on Sunday, bringing the total increase in prices to ₹3.70-3.75 a liter in less than a week since daily price revisions resumed.
Gasoline in Delhi now costs ₹99.11 per liter compared to ₹98.61 previously, while diesel prices have risen from ₹89.87 to ₹90.42, according to a price release from the state fuel distributors.
Tax rates have increased across the country and vary from state to state depending on the level of local taxation.
This is the fifth rate hike since the end of a four and a half month pause in rate revisions on March 22nd. On all of the previous four occasions, prices have risen by 80 paise a liter – the steepest single-day price increase since the daily price revision was introduced in June 2017.
Overall, petrol prices have risen by ₹3.70 per liter and diesel by ₹3.75 in six days.
Prices had been frozen since November 4 ahead of general elections in states like Uttar Pradesh and Punjab – a time when commodity (crude) prices rose by around $30 a barrel.
The rate revision was expected soon after the vote count on March 10, but it was delayed by a couple of weeks, apparently to give opposition leaders like Rahul Gandhi no opportunity to say they were right in predicting prices after the elections will increase.
Congress and other opposition parties have criticized the government for raising prices, saying it adds to the burden on ordinary people who suffer from the general rise in commodity prices.
The rise in retail price, justified by the surge in crude oil prices from around $82 a barrel to $120 during the 137-day pause, is huge, but state-owned fuel retailers Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) are progressively passing on the required increase.
Moody’s Investors Services said last week that state-owned retailers collectively lost about $2.25 billion (19,000 crore) in revenue because they put gas and diesel prices on hold 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 of gasoline (gasoline), given an underlying crude price of $100-120 per barrel,” according to Kotak Institutional Equities .
CRISIL Research said it would require a £9-£12 per liter retail price increase for a full pass-through of an average of £100 per barrel of crude oil and a £15-£20 per liter increase if the average crude price rises to $110-$120 .
India is 85% dependent on imports to meet its oil needs and therefore retail prices are adjusting in line with global developments.
