Fuel prices rise again after two-day break

Fuel prices rise again after two-day break

New Delhi, February 23, 2021

Petrol and diesel prices across the country continued their northward march after a two-day break, taking the retail rates to unprecedented levels while burning bigger holes in the consumers' pockets.

The oil marketing companies raised the pump price of both petrol and diesel by 35 paise per litre on Tuesday.

With this, petrol is now priced at Rs 90.93 a litre and diesel Rs 81.32 a litre in the capital.

Across the country as well, petrol and diesel prices increased by between 32 and 40 paise per litre, depending on the level of local duty at the state level.

Sources in OMCs said that the price rise on Tuesday followed movement in product prices in global markets. Crude oil is also on fire with the benchmark Brent crude gaining over 2 per cent on Tuesday to reach closer to $67 a barrel now. It was less than $ 60 a barrel just a few days back.

Petrol and diesel prices have been rising continuously since February 9. During this phase of price rise (In the last 12 days since February 9), the price has gone up by Rs 3.63 per litre for petrol and Rs 3.84 per litre for diesel in Delhi.

The increase in the previous weeks has taken petrol prices across historic high levels of Rs 100 a litre in several cities across the country.

In Mumbai, petrol prices is just Rs 3 per litre short (Rs 97.34 a litre) of touching the three-digit mark for the very first time ever. Diesel prices in the city are closing in on Rs 90 a litre (Rs 88.44/ litre).

In all other metros, petrol is over Rs 90 a litre while diesel is well over Rs 80 a litre. Premium petrol crossed Rs 100 per litre mark in several cities of Rajasthan, Madhya Pradesh and Maharashtra a few days back.

Since fuel prices are benchmarked to a 15-day rolling average of global refined products' prices and dollar exchange rate, pump prices can be expected to remain northbound over the next few days even if crude prices stabilise.

Petrol and diesel prices have increased 25 times in 2021 with the two auto fuels increasing by Rs 7.22 and Rs 7.45 per litre, respectively so far this year.

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 loss on the sale of auto fuels.

IANS

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