No respite: Fuel prices go up further on Saturday
Business & Economy

No respite: Fuel prices go up further on Saturday

IANS

New Delhi, June 13, 2020

Petrol and diesel prices maintained their rise through the week with the two petroleum products getting dearer by 59 and 58 paise per litre, respectively, on Saturday.

The auto fuel prices have now risen seven days in a row with pump prices of petrol increasing by Rs 3.90 and diesel by Rs 4 per litre since Sunday. All through the week petrol and diesel prices have risen by about 60 paise per litre per day barring Tuesday when the rise was marginally lower at 40 paise per litre.

Sources in oil marketing companies (OMCs) said that the price rise could continue for a 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 the COVID-19 related lockdown. Even global crude prices have more than doubled from April levels at close to $40 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.

The increase in retail prices on Saturday has been made under the dynamic pricing system for daily revision of fuel prices which OMCs resumed after a break of more than 83 days during the lockdown period.

In the national capital, the retail price of petrol increased by 59 paise and diesel by 58 paise per litre to Rs 75.16 and Rs 73.39 per litre, respectively.

In other cities, the increase could vary depending on the tax structure on products.

IANS

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