Diesel price hiked, no change in petrol rate
What's the story
Diesel price on Friday was hiked by 20 paise per liter - the first increase in rates in over two months - as international oil prices neared their highest since 2018. The price of diesel was hiked to Rs. 88.82 per liter in Delhi and to Rs. 96.41 in Mumbai, according to a price notification of state-owned fuel retailers.
Information
Oil companies had not revised fuel rates since September 5
Petrol price was not changed. It costs Rs. 101.19/liter in Delhi and Rs. 107.26 in Mumbai. State-owned Indian Oil Corporation, Bharat Petroleum Corporation Limited, and Hindustan Petroleum Corporation Limited had not revised fuel rates since September 5 despite a surge in international oil prices.
Oil rates
Oil rates are up two percent for the week
On Friday, Brent crude rose to $77.50 a barrel as crude inventories shrunk from Europe to the US. Oil rates are up two percent for the week and this is the fifth weekly gain. Since the last price revision on September 5, petrol and diesel prices in the international market are higher by around $6-$7 per barrel as compared to average prices during August.
Prices
Oil companies are passing on the increase to customers
But oil companies, which are supposed to revise prices daily in line with the cost, did not change rates for almost three weeks. They have now started to pass on the increase to customers. Average international crude oil prices had fallen by more than $3 per barrel in August as compared to the previous month.
Revision
Last downward revision in oil rates was on September 5
This came against the backdrop of mixed economic data from the US and China and mobility restrictions in Asia fuelled by the fast-spreading Delta variant. Accordingly, retail prices of petrol and diesel in the Delhi market were reduced by Rs. 0.65 a liter and Rs. 1.25 per liter by oil marketing companies from July 18 onwards. The last downward revision was on September 5.
Price hike
Petrol costs more than Rs. 100 in several states
Prior to that, the petrol price was increased by Rs. 11.44 a liter between May 4 and July 17. Diesel rate had gone up by Rs. 9.14 during this period. The price hike during this period pushed petrol prices above the Rs. 100-a-liter mark in more than half of the country, while diesel crossed that level in at least three states.