Petrol prices with additives has crossed broken the psychological Rs 100 per litre mark in different parts of the country as oil marketing companies continue with their daily price hike for auto fuels in wake of heated up global oil market.
Indian Oil Corporation's (IOCs), Xtra Premium Petrol, which a superior version of the auto fuels with additives, is being retailed now at over Rs 100 per litre in few cities in Rajasthan and Maharashtra. In Ujjain, the Extra premium petrol is priced at Rs 100.25 a litre while in Jaisalmer the same variety of petrol is priced at Rs 100.52 a litre.
In several other cities in the two states and in Madhya Pradesh, the fuel variety has either crossed Rs 100 per litre mark or is precariously close to the mark with reaching the miles atone as early as tomorrow if there is further price increase by OMCs.
Giving effect to developments in the global oil markets, OMCs have been revising the price of auto fuels - petrol and diesel, consecutively for past seven days. This has even taken the retail price of normal petrol, which is largely consumed in the country within touching distance of Rs 100 per litre mark. For example - Petrol is priced at Rs 95.46 a litre in Mumbai, Rs 96.96 in Bhopal, Rs 95.44 in Jaipur.
In the last seven days, the price has gone up by Rs 2.06 per litre for petrol while diesel rate has risen by Rs 2.56 a litre.
Officials in OMCs said that high price of petrol in few states, particularly Rajasthan, Maharashtra and Madhya Pradesh is due to higher level of state imposed duties. In addition to 33 per cent VAT, Madhya Pradesh imposes Rs4.5/litre VAT at flat rate plus 1% Cess on petrol; Maharashtra has 26 per cent VAT+ Rs 10.12/Litre additional tax on petrol while Rajasthan has 36 per cent VAT+Rs 1500/KL road development cess on petrol. These are the highest tax rates across the country.
The increase in fuel prices has followed the firming global oil prices (both product and crude) that have maintained record streak of gains in past few days with crude reaching close to $ 63.5 a barrel mark ( single day gain over 2 per cent).
But experts said that fresh lockdown in various parts of the globe on new coronavirus strain may impact demand and push down prices soon. Also, Saudi Arabia unilateral production cut may also be withdrawn post March putting downward pressure on oil prices.
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 a long time earlier, OMCs had 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 19 times in 2021 with the two auto fuels increasing by Rs 5.28 and Rs 5.48 per litre respectively so far this year.
The last few increases in pump prices in petrol and diesel has taken its price to record levels across the country in all major metro cities and other towns.
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.