Petrol and diesel prices rose again on Wednesday with oil marketing companies deciding to increase the prices of the two auto fuels by 25 paisa per litre for the second consecutive day. With Wednesday's price rise, petrol is available at new record high of Rs 86.30 a litre in Delhi while diesel is available in the city at Rs 76.48 a litre.
Across the country, the fuel prices increased sharply but its rise at retail level varied state-to-state depending on the quantum of taxes in each state.
In Mumbai, petrol price is closing on Rs 93 a litre while in Chennai, it is reaching closer to Rs 89 a litre and in Kolkata, within touching distance of Rs 88 a litre. Diesel, on the other hand, is closing on Rs 83 a litre in Mumbai, Rs 81.5 a litre in Chennai and Rs 80 a litre in Kolkata.
Though firm global crude and product price is the reason for the increase in retail price of petrol and diesel, it is interesting to note that even though crude has been hovering just over $55 a barrel for some time now, OMCs have gone in for both a pause in price of auto fuels as well increase in its retail prices on consecutive days.
Crude price have remained firm for last few weeks in wake of unilateral production cuts announced by Saudi Arabia and a pick-up in consumption in all major economies globally.
The petrol and diesel prices have increased 10 times in January with the two auto fuels increasing by Rs 2.59 and Rs 2.61 per litre, respectively this month.
The last few increases in pump prices in petrol and diesel has taken their prices to record levels across the country in all major metro cities and other towns. The last time the retail price of auto fuels were closer to current levels was on October 4, 2018 when crude prices had shot up up $80 a barrel.
The current price rise is largely on account of steep increase in central taxes of petrol and diesel and firm crude prices.
Petrol price was very close to breaching the all-time high level of Rs 84 a litre (reached on October 4, 2018) when it touched Rs 83.71 a litre on December 7, 2020. But the march had been halted ever since then with no price revision by the OMCs in the month. The price rise started again only on January 6.
Oil companies executives said that petrol and diesel prices may increase further in coming days as retail prices may have to be balanced in line with global developments to prevent OMCs from making loss on sale of auto fuels.