Petrol, diesel prices rise again amid volatility in oil market
New Delhi, October 1, 2021
Petrol and diesel prices rose simultaneously for the second straight day on Friday amidst volatility in global oil prices with benchmark crude remaining at a high level of over $ 78 a barrel.
Accordingly, diesel prices increased by 30 paise per litre in the national capital to Rs 90.17 per litre, while petrol rates rose by 25 paise per litre to Rs 101.89 a litre, according to Indian Oil Corporation, the country's largest fuel retailer.
Diesel prices have now increased for six days taking up its retail price by Rs 1.55 paise per litre in Delhi. Diesel prices were raised on September 24 by 20 paise per litre and again by 25 paise per litre each on Sunday, Monday and Tuesday and by 30 paise per litre on Thursday and Friday.
Petrol prices had maintained stability since September 5 but oil companies finally raised its pump prices this week given a spurt in the product prices lately.
OMCs had preferred to maintain their watch prices on global oil situation before making any revision in prices. This is the reason why petrol prices were not revised for the last three weeks. But extreme volatility in global oil price movement has now pushed OMCs to effect the increase.
The wait and watch plan of OMCs had come to the relief of consumers earlier as no revision came during a period when crude price were on the rise over shortfall in US production and inventories and a pick up in demand. This would have necessitated about Re 1 increase in price of petrol and diesel.
In Mumbai, the petrol price increased by 21 paise per litre to Rs 107.99 per litre, while diesel rates rose to about Rs 97.80 a litre.
Across the country as well, petrol and diesel increased between 20-30 paise per litre but their retail rates varied depending on the level of local taxes in the state.
Fuel prices in the country have been hovering at record levels on account of 41 increases in their retail rates since April this year. It fell on a few occasions but largely remained stable.
After rising over a three-year-high level of $80 a barrel earlier this week, the global benchmark has now come down to $78 a barrel.
Oil rates are up 2 per cent for the week and this is the fifth weekly gain. Since September 5, when both petrol and diesel prices were revised, the prices of petrol and diesel in the international market are higher by around $6-7 per barrel as compared to average prices during August.