Petrol, Diesel prices hiked by Rs 2.40 in four days

After a one-day pause, state-owned oil marketing companies raised petrol and diesel prices by 80 paise again on Friday. These prices were revised for the very first time on Tuesday after a gap of more than 4-months.

Accordingly, the increase in selling price which includes state levies, central excise and cess amongst others came days after crude oil prices saw an astronomical rise due to the Russian-Ukrainian crisis. The increases are the steepest single-day rise since the daily price revision was started in June 2017.

With three increases beginning March 22, petrol and diesel prices have gone up by Rs 2.40 a litre. In New Delhi, petrol now costs Rs 97.81 per litre against Rs 97.01 and diesel Rs 89.07 per litre after the price revision. In the financial capital Mumbai, prices were hiked to Rs 112.51 per litre for petrol and diesel to Rs 96.07 per litre. In Chennai, prices went up by 76 paise to Rs 103.67. In Kolkata, rates hiked to Rs.107.18 from Rs. 106.34 (84 paise hike).

Till Tuesday, fuel prices were steady since early November when the Centre reduced excise duty on petrol and diesel by Rs 5 and Rs 10 per litre, respectively.

The rate revision was expected soon after assembly elections ended on March 10 but it was put off. Oil companies are now recouping the losses. Moody's Investors Services says fuel retailers IOC, BPCL and HPCL together lost around USD 2.25 billion (Rs 19,000 crore) in revenue for keeping petrol and diesel prices on hold during elections in five states.

CRISIL Research said a Rs 9-12 per litre increase in retail price will be required for a full pass-through of an average USD 100 per barrel crude oil and Rs 15-20 a litre hike if the average crude oil price rises to USD 110-120. India is 85 per cent dependent on imports for meeting its oil needs and so retail rates adjust accordingly to the global movement.