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Petrol, diesel prices rise sharply for second day
New Delhi, May 5, 2021
Petrol and diesel prices in the country rose again sharply by 19 paise and 21 paise per litre, respectively, on Wednesday as oil marketing companies (OMCs) continued to cover for their losses after the pices for 18 days during the recent Assembly elections in five states.
This is the second increase in fuel prices in as many days after petrol and diesel prices rose by 15 paise and 18 paise per litre, respectively, on Tuesday.
With Wednesday's increase, petrol is now being retailed at Rs 90.74 a litre and diesel Rs 81.12 a litre in the national capital.
Across the country as well, petrol and diesel prices increased on Tuesday but the quantum varied depending on the level of local levies in the respective states.
The oil companies had already increased the ATF prices by 6.7 per cent effective this month.
OMCs benchmark retail fuel prices to a 15-day rolling average of global refined products' prices and dollar exchange rate. In the last fortnight global oil prices have hovered in the $66-67-a-barrel range, higher than the levels when petrol and diesel prices were last revised. Crude prices have jumped above $69 a barrel on Wednesday.
The price of the two auto fuels had fallen by 16 paise and 14 paise per litre, respectively, on April 15 after a 15-day break when OMCs kept the prices static. Thereafter, revision of fuel prices had been halted.
The OMCs went on price cut for the first time this year on two consecutive days -- March 24 and 25 -- after keeping oil prices steady for the previous 24 days. It again reduced the price on March 30. Thereafter, fuel prices remained unchanged for 15 days before falling again on April 15. In all, petrol prices have fallen by 77 paise per litre and diesel by 74 paise per litre in 2021 so far.
Earlier, petrol and diesel prices increased 26 times in 2021 with the two auto fuels increasing by Rs 7.46 and Rs 7.60 per litre, respectively, so far this year.
With global crude prices at over $69 a barrel mark, OMCs may have revise fuel prices upwards again if there is any further firming up.