NEW DELHI: After petrol prices crossed ₹100 a litre in Delhi on Tuesday, diesel in Mumbai soared above the mark on Wednesday as state-run oil marketing companies raised auto fuel rates by 80 paise per litre for the eighth time in nine days
NEW DELHI: After petrol prices crossed ₹100 a litre in Delhi on Tuesday, diesel in Mumbai soared above the mark on Wednesday as state-run oil marketing companies raised auto fuel rates by 80 paise per litre for the eighth time in nine days. Auto fuels have become costlier by ₹5.60 a litre since March 22.
With the latest rise, petrol was selling at ₹101.01 a litre and diesel at ₹92.27 in Delhi. The two fuels were being sold at ₹115.88 per litre and ₹100.10 in Mumbai on Wednesday. Petrol and diesel rates vary from place to place because of state specific value-added tax (VAT) and other levies such as transportation costs.
Diesel was sold at above ₹100 a litre in Mumbai last on November 3. Auto fuels are costliest in the financial capital compared to Delhi, Chennai and Kolkata because of differences in VAT and other local levies.
People aware of the matter said on condition of anonymity that the movement of domestic fuel prices will continue northward for some more time even as global oil prices have softened from the March 7 peak of over $139 a barrel. Prices are moving up in one direction as state-run oil marketing companies are recovering revenue losses they incurred when rates were frozen for 139 days because of assembly elections in five states.
International benchmark Brent crude, which soared to $139.13 on March 7 intraday trade on supply concerns because of the Russia-Ukraine war, remained extremely volatile because of geopolitical developments. On Monday, it plunged to $112.48 exhibiting demand concern as Covid-19 cases surged in China. On Tuesday, it fell further to $110.23 due to a combined effect of demand concerns and prospects of peace between Russia and Ukraine. Brent was 0.94% up at $111.27 a barrel on Wednesday morning (10:45 am India time).
Experts say the movement of global fuel prices will depend on the oil producers’ cartel, Organisation of the Petroleum Exporting Countries and its allies (together known as OPEC+). “We expect crude oil prices to remain volatile in today’s session ahead of Thursday’s OPEC+ meeting,” said Rahul Kalantri, vice president (commodities) at security firm Mehta Equities Ltd.
OPEC+ will hold its 27th OPEC and a non-OPEC ministerial meeting on March 31.
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