The Monday increase in petrol prices by 30 and diesel by 35 pence per liter respectively brought the total hike to Rs 4-4.10 a liter in the past week.
According to price notifications from state fuel retailers, petrol in Delhi will now be Rs 99.41 per liter instead of Rs 99.11 before. Diesel rates have increased from Rs 90.42 to Rs 90.77 per liter.
The rates have increased throughout the country, and they vary by state depending on the level of local taxation.
This is the sixth price increase since March 22, when there was a four-and-a-half-month-long rate revision hiatus.
READ MORE: Amit Shah’s Chandigarh Government Employees Plan Riles Punjab Parties
Prices increased by 80 paise per liter on the first four occasions – the largest single-day increase since June 2017, when the daily price revision was implemented. On Sunday, the petrol price increased by 50 paise per liter and diesel prices rose by 55 paise.
All in all, petrol prices rose by Rs 4 per Liter and diesel by Rs 4.10.
Prices were frozen in advance of elections in Uttar Pradesh and Punjab on November 4. This was when crude oil prices soared by approximately USD 30 per barrel.
Although the rate revision was due to take place soon after counting votes on March 10, it was delayed for a few weeks.
The retail price increase resulting from crude oil prices rising over the 137-day hiatus of USD 82 to USD 120 is enormous. Still, state-owned fuel retailers Indian Oil Corporation and Bharat Petroleum Corporation Ltd. (BPCL) are passing along the necessary increase in stages.
Moody’s Investors Services reported last week that the revenue lost by state retailers totaled USD 2.25 billion (Rs. 19,000 crores) for maintaining low petrol and diesel prices during the election period.
According to Kotak Institutional Equity, oil companies will need to raise diesel prices by Rs 13.1-24.9 per gallon and gasoline (petrol) prices by Rs 10.6-22.3 per gallon, assuming an underlying crude oil price of USD 100-120 per barrel.
CRISIL Research stated that a Rs 9-12 per-liter increase in retail prices would be necessary to fully pass-through an average USD 100/barrel crude oil price and Rs 15-20 per liter if the average crude oil price rises above USD 110-120.
India is 85 percent dependent on imports to meet its oil needs. Retail rates adjust accordingly to global movements.
