Petrol Price Rise Again

Fuel prices increased again and it is the seventh time in eight days when the prices are hiked. On Tuesday, as per the notifications of fuel retailers, petrol price was hiked by 80 paise a litre resulting in crossing the Rs.100 mark and diesel by 70 paise per litre.

Now in the national capital, petrol will cost you Rs.100.21 a litre in comparison to Rs.99.41 per litre earlier. On the other hand, diesel prices are at Rs.91.47 a litre against Rs.90.77 per litre earlier.

Petrol prices vary across states due to the Value Added Tax (VAT). so you will find that petrol is the most costly in Mumbai among metropolitan cities. In Mumbai petrol will cost you Rs.115.04 per litre and diesel will be sold at Rs.99.25 per litre.

Hike In Fuel Rates After Four Months

Before March 22, the fuel rates remained stable for four months, despite the rise in Crude oil prices. But you should know that the Oil Marketing Companies lost around Rs.19,000 crore while keeping the fuel rates steady during elections. They retain the prices during assembly elections held in Uttar Pradesh, Goa, Manipur, Punjab and Uttrakhand.

As per Kotak Securities Oil Companies, “will need to raise diesel prices by ₹ 13.1-24.9 per litre and ₹ 10.6-22.3 a litre on petrol at an underlying crude price of $100-120 per barrel.”

And according to Crisil’s research, “₹ 9-12 per litre increase in retail price will be required for a full pass-through of an average $100 per barrel crude oil and ₹ 15-20 a litre hike if the average crude oil price rises to $110-120.”