Petrol, diesel prices rise continues for 16th straight day

Petrol and diesel prices continued to rise with the two auto fuels getting dearer by 33 and 58 paisa per litre respectively on Monday.

This is the 16th day of fuel price rise since June 7 when oil companies began the daily price revision mechanism after a hiatus of 83 days during the lockdown.

With the latest increase, petrol is being retailed at Rs 79.56 per litre and diesel at Rs 78.85 a litre in Delhi. This is an increase of Rs 8.30 in the the price of petrol per litre since June 7. Similarly, diesel prices have gone up highly  by Rs 9.46 per litre during the 16 day period.

The good news is that auto fuel price rise may either stop or the quantum of increase could fall in the coming week as oil companies have now priced the products closer to international benchmark rates. There could be days when prices are not changed by oil companies. Already, the daily increase in price of petrol has fallen to 33 paisa per litre level.

Sources in oil marketing companies, however, said that price rise could continue for few more days as global product prices are firming up with a pick up in demand following opening up of economies across the globe post COVID-19 related lockdown. Even global crude prices have more than doubled from April levels to over $42 a barrel level.

Also, OMCs are catching up on price levels that bring the product prices closer to international benchmark rates. The price freeze of 83 days even with a substantial increase in excise duty on petrol and diesel by the Centre, has increased the price gap resulting in losses on sale of product for OMCs.

Prices of transportation fuel were last revised under the dynamic pricing policy on March 16 and there were few instances of price hike later only when the respective state governments hiked VAT or cess.