Petrol and diesel prices rose again on Wednesday on the back of a surge in global crude prices to over $61 a barrel, as the oil marketing companies announced increase in pump prices for both fuels by 30 paise and 25 paise per litre respectively in Delhi.
Petrol is now priced at Rs 87.60 and diesel Rs 77.73 per litre in the national capital.
Petrol prices increased from 26-29 paise per litre and diesel by 24-27 paise per litre across the country, depending on local taxes levied on the two petroleum products.
The prices of petroleum product have now reached new highs with the latest increase.
Petrol prices in Mumbai inched closer to Rs 100 as its retail prices now is Rs 94.12 a litre. Diesel is also the most expensive in Mumbai at Rs 84.63 a litre.
Though firm global crude and product prices led to increase in retail prices of petrol and diesel, it is interesting to note that even though the crude was hovering just over $55 a barrel for a long time earlier, OMCs had gone in for both a pause in uptick in retail auto fuel prices on consecutive days.
Crude oil prices have remained firm for the last few weeks in the wake of unilateral production cuts announced by Saudi Arabia and a pick-up in consumption in all major economies globally.
The petrol and diesel prices have increased 14 times in 2021, which add up to Rs 3.89 and Rs 3.86 per litre respectively so far.
The last few increases in pump prices of petrol and diesel have taken the prices to record levels across the country. The last time the retail prices of auto fuels were closer to the current levels was on October 4, 2018 when crude prices had shot up to $80 a barrel.
The current price rise is largely on account of steep increase in central taxes of petrol and diesel and firm crude prices. The Budget has also imposed a new agriculture infrastructure and development cess.
Petrol prices were very close to breaching an all-time high of Rs 84 a litre (reached on October 4, 2018) when it touched Rs 83.71 a litre on December 7, 2020. But the march has been halted ever since as no price revision was announced by the OMCs in the month. The price rise started again only on January 6.
Oil companies executives said that petrol and diesel prices may increase further in the coming days as retail prices may have to be balanced in line with global developments to prevent OMCs from making losses on the sale of auto fuels.