On Wednesday, petrol and diesel prices were once again hiked by oil marketing companies (OMCs). Petrol and diesel prices are currently the highest in Delhi. Petrol prices have risen by Rs 1.50 a litre in Delhi in May in seven hikes so far. Similarly, diesel prices have risen by Rs 1.88 per litre in capital this month.
Petrol prices in some states including Rajasthan, Madhya Pradesh and in some places in Maharashtra have breached the Rs 100 per litre mark while premium petrol has been hovering above that level for some time now.
Fuel prices increased across the country on Wednesday but its quantum varied depending on the level of local levies in respective states.
In the capital, petrol and diesel prices were increased by 25 paise each. Petrol prices have now gone up from Rs 91.80 per litre to Rs 92.05 per litre. Diesel has become costlier from Rs 82.36 per litre to Rs 82.61 per litre, according to Indian Oil Corporation.
Petrol in Mumbai costs Rs 98.36 per litre and diesel Rs 89.75 per litre. The price of petrol in Chennai is Rs 93.84 per litre and diesel Rs 87.49 per litre. In Kolkata, the price of petrol is Rs 92.16 and diesel is being retailed at Rs 85.45 per litre according to Indian Oil Corporation.
The price of petrol and diesel in India has been rising recently due to firmer global crude oil prices in the wake of higher demand.
Fuel prices up this week
Fuel prices have now increased on each of the day this week. Prior to holding back auto fuel prices on Saturday and Sunday, its pump rates had increased sharply on previous four days as well.
Fuel prices differ from state to state depending on the incident of local taxes such as VAT and freight charges. Central and state taxes make up 60 percent of the retail selling price of petrol and over 54 percent of diesel. The Union government levies Rs 32.90 per litre of excise duty on petrol and Rs 31.80 on diesel.
OMCs benchmark retail fuel prices to a 15-day rolling average of global refined products' prices and dollar exchange rate. In the last fortnight global oil prices have hovered in $66-67 a barrel range higher than the levels when petrol and diesel prices were last revised. Crude prices have jumped around $69 a barrel now, IANS said.
With global crude prices at around $69 a barrel mark, OMCs may have to revise fuel prices upwards again if there is any further firming up.