Petrol and diesel prices were hiked by 80 paise per litre on Tuesday, taking the total increase to Rs 9.20 in 15 days. This is the 13th rise in fuel prices since the ending of a four-and-half-month long hiatus in rate revision on March 22.
In Delhi, petrol will now cost Rs 104.61 per litre and diesel at Rs 95.87 per litre. In Mumbai, the petrol and diesel prices per litre will cost Rs 119.67 and Rs 103.92, according to a price notification of state fuel retailers.
Fuel prices had been on a freeze since November 4, 2021, ahead of the assembly elections in the five states -- a period during which the cost of raw material (crude oil) soared by about US $30 per barrel. Rates have been increased across the country and vary from state to state depending upon the incidence of local taxation. Rates are also dependent on freight.
Moody's Investors Services had earlier stated that state retailers together lost around USD 2.25 billion (Rs 19,000 crore) in revenue for keeping petrol and diesel prices on hold during the election period.
Oil companies "will need to raise diesel prices by Rs 13.1-24.9 per litre and Rs 10.6-22.3 a litre on gasoline (petrol) at an underlying crude price of USD 100-120 per barrel," according to Kotak Institutional Equities. CRISIL Research had said a Rs 9-12 per litre increase in retail price will be required for a full pass-through of an average USD 100 per barrel crude oil and Rs 15-20 a litre hike if the average crude oil price rises to USD 110-120.
India is 85 percent dependent on imports for meeting its oil needs and so retail rates adjust accordingly to the global movement.
With PTI inputs
First Published: IST