A day after was no hike in rates, petrol and diesel prices were hiked again on Monday. The price of petrol is increased by 5 paise per litre while that of diesel by 13 paise per litre.
According to the official website of Indian Oil Corporation, petrol now costs Rs 80.43 per litre in Delhi, Rs 87.19 per litre in Mumbai. Similarly, diesel costs Rs 80.53 a litre in Delhi, Rs 78.83 a litre in Mumbai. Rates differ from state to state depending on the incidence of value-added tax (VAT).
Oil marketing companies have been adjusting retail rates in line with costs after an 82-day break from rate revision amidst the COVID-19 pandemic. These firms on June 7 restarted revising prices in line with costs.
During the past 21 days, the quantum of price hike gradually declined from around 60 paise raise for a few days, immediately post the resumption of daily price revision, to less than 20 paise during the past few days. In a historic development, the price of diesel surged above that of petrol in the national capital during this period. However, petrol price is currently just two paise away from that of diesel.
Globally diesel is priced a tad higher than petrol. In India too, the base price of diesel is slightly higher than petrol but taxation at central and state levels changed the complexion of retail prices. If the price of petroleum products and crude hold their positions in global markets, then petrol and diesel prices rise may stop for a longer period and we may even see marginal fall in prices.
(Inputs from Agencies)