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Petrol and diesel prices rises for 2nd straight day
New Delhi, November 21, 2020
Oil marketing companies (OMCs) on Saturday raised the retail prices of petrol and diesel for the second consecutive day after a break of almost two months.
The price of petrol has increased by 15 paise per litre in the national capital to Rs 81.38 from Rs 81.23 a litre on Friday.
Similarly, the retail price of diesel has been increased by 20 paise per litre to Rs 70.88 per litre in Delhi.
With the price revision, the retail prices of both the auto fuels have also been increased across the country but the level of increase is different in various cities due to the variable taxation structure pursued by the states.
The increase in petrol and diesel prices was expected as the global oil market has shown signs of firming up after positive news on successful introduction of a coronavirus vaccine soon. Moreover, the demand for oil and falling inventory levels in major consuming markets have also firmed up crude prices.
The benchmark Brent crude price is hovering close to $45 a barrel for some time now while US WTI crude is also over $42 a barrel. The two have remained firm since the beginning of the month after remaining soft in most parts of October at close to $40 a barrel or less.
OMC sources said that auto fuel hike on Friday and Saturday may not end just yet and the prices of the two petroleum products may increase gradually over the next week as well. This is required to keep the OMCs from incurring losses on the sale of petrol and diesel.
While India has brought both petrol and diesel out from the earlier administrative price regime and their retail prices are revised daily based on global movement product prices, holding the retail price revision for almost two months was surprising. At a time when globally prices change by the hour, in India they were kept static for a long period.