Petrol nears Rs. 99/liter mark in Chennai after latest hike
Petrol prices in Chennai neared Rs. 99 per liter mark on Thursday after fuel prices were increased again on firming international oil rates. The price of petrol was hiked by 26 paise per liter and that of diesel by 27 paise a liter, according to a price notification of state-owned fuel retailers. The increase took rates across the country to fresh highs.
Fuel prices differ from state to state
In Delhi, petrol hit an all-time high of Rs. 97.76 a liter, while diesel is now priced at Rs. 88.30 per liter. Fuel prices differ from state to state depending on the incidence of local taxes such as Value Added Tax (VAT) and freight charges.
Petrol costs over Rs. 100 in nine states and UTs
Due to the above-mentioned reason, petrol has crossed the Rs. 100-a-liter mark in nine states and Union territories - Rajasthan, Madhya Pradesh, Maharashtra, Andhra Pradesh, Telangana, Karnataka, Jammu and Kashmir, Odisha, and Ladakh. Among metro cities, petrol is already above Rs. 100 in Mumbai, Hyderabad, and Bengaluru and now rates are inching closer to that mark in Chennai.
Diesel costs over Rs. 100 in Sri Ganganagar and Hanumangarh
Petrol in Chennai now costs Rs. 98.88 per liter. Diesel in the city is priced at Rs. 92.89 a liter. In Mumbai, petrol now costs Rs. 103.89 a liter and diesel Rs. 95.79. Rates of diesel had crossed the Rs. 100-a-liter mark in Rajasthan's Sri Ganganagar and Hanumangarh earlier this month and now have crossed the same mark in few places in Odisha.
This is the 29th hike since May 4
The hike on Thursday is the 29th increase in prices since May 4, when state-owned oil firms ended an 18-day hiatus in rate revision they observed during assembly elections in states like West Bengal. In 29 hikes, the price of petrol has risen by Rs. 7.36 per liter and diesel by Rs. 7.77 a liter.
International oil firms are anticipating a recovery in demand
Oil companies revise rates of petrol and diesel daily based on the average price of benchmark fuel in the international market in the preceding 15 days, and foreign exchange rates. International oil prices have firmed up in recent weeks in anticipation of demand recovery following the roll-out of vaccination programs by various countries.