Mumbai's petrol price crosses Rs 105-mark after hike, diesel remains unchanged
Photo Credit: AFP

Petrol prices in the country were hiked by oil marketing companies (OMCs) on Friday after a gap of two days.

In the first increase of July, petrol price was hiked by 35 paise in the national capital, while diesel prices remained unchanged, according to data from the Indian Oil Corporation (IOC).

In Delhi, petrol hit an all-time high of Rs 99.16 a litre, while diesel is now priced at Rs 89.18 per litre.

In Mumbai, where petrol price crossed Rs 100 mark for the first time ever on May 29, the fuel price reached new high of Rs 105.24 per litre on Friday. While, diesel price continues to be at Rs 96.72 a litre, the highest among metros.

Chennai on Friday joined the list of cities where petrol is retailing above Rs 100. Petrol is currently being sold at Rs 100.13 in the southern city, whereas diesel costs Rs 93.72.

The price of petrol in Kolkata is Rs 99.04 per litre while diesel is sold at Rs 92.03 per litre.

With Friday's price hike, fuel prices have now increased on 33 days and remained unchanged on 28 days since May 1. The 33 increases have taken up petrol prices by Rs 8.77 per litre in Delhi. Similarly, diesel has increased by Rs 8.45 per litre in the national capital.

India's fuel demand rebounds in June

India's fuel demand rebounded in June as a pick-up in economic activity following the easing of coronavirus restrictions accelerated petrol sales to 90 per cent of pre-virus levels.

Petrol sale rose 5.5 per cent year on year to 2.12 million tonnes in June. It was up 29.35 per cent from May but 10.4 per cent lower than pre-Covid time in June 2019, preliminary data from state fuel retailers showed.

The sale of Diesel - the most used fuel in the country - rose 18.5 per cent from May to 5.35 million tonnes but was down 1.84 per cent from June 2020 and 18.8 per cent from June 2019. This is the first monthly increase since March.

Fuel demand had recovered to near-normal levels in March before the onset of the second wave of Covid-19 infections led to the reimposition of lockdowns in different states, stalling mobility and muting economic activity.

Consumption in May slumped to its lowest since August last year as lockdowns and restrictions in several states stalled mobility and muted economic activity. Fuel demand showed signs of resurgence in June after restrictions began to be eased and the economy gathered pace.

With COVID case addition continuing to decline and vaccination pace picking up, the state governments have continued to reopen, though some exceptions such as Maharashtra exist.

(With inputs from PTI)

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