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Fuel prices continue to increase after a day’s break

New Delhi: Amid growing tensions in the world, fuel prices took a steep rise again in India. This spike came after a short break of a day with the oil marketing companies increasing the petrol price by 5 paise with its counterpart diesel seeing a 13 paise per litre rise, in the natonal capital.

On Monday, Delhi’s petrol prices were recorded at Rs. 80.43 per litre. Notably, the prices of diesel shot up more than petrol and stood at Rs. 80.53 per litre.

Recording this level up, the fuel prices have increased on 22 of the last 23 days, with no rise of prices noted on Sunday. However, the prices of petrol remained unchanged for another day in between after the daily revision based on dynamic pricing was reinstated by OMCs.

As the revision of everyday prices of fuel restarted on June 7th, the cost of petrol rose by Rs. 9.17 and diesel increased Rs. 11.14 in Delhi. Fuel prices in other cities of the country marked a similar trajectory.

During the past 23 days, the amount of price hike slowly reduced from about 60 paise raise for a few days, immediately after the continuation of daily price revision, to less than 20 paise in the last few days. Currently, lesser than 10 paisa per litre.

Making history, in its bizarre form, diesel prices rose up to more than that of petrol in the nation’s capital city during these times. Despite the quantum of petrol price hike remaining more than diesel on Saturday, the latter continues to cost more than petrol.

Officials in oil marketing companies said that it is difficult to predict which of the two fuels will be priced higher in the Capital as the gap between the two is almost negligible. But petrol prices have shown more volatility in international markets that may take it ahead once again in coming days.

Leaving Delhi aside, the selling price of diesel and petrol are continuing its earlier path in other metropolitan cities of the country. Here, the cost of petrol is at a premium of between Rs. 5 and Rs. 8 per litre.

The difference between the auto fuel prices in Delhi and other metros is a result of the taxation structure.

The taxes on petrol is far higher compared to the taxes levied on diesel in the other cities. However, it holds a similarity of taxes for petrol and diesel in Delhi.

As for the global rates, diesel is comparatively a little more than petrol. India’s base price of diesel is a tad bit higher than petrol. However, the taxation structure varies at Central and State levels as the retail prices are different in different places.

If the price of petroleum products and crude stay at their fare sin the world markets, then there are chances of the price hike in petrol and diesel to halt for a long period of time. It may also see a fall in prices, marginally.

This increase in fuel prices kick started from June 7th. This marked the day when oil companies adopted the daily price revision policy again, post the pause of 82 days caused due to the coronavirus induced lockdown.