Petrol prices on upswing, set to breach all-time high across India

A person filling fuel tank of a vehicle

Auto fuel prices are on the upswing in the country with the pump price of petrol set to breach all-time high levels next week.

The oil marketing companies (OMCs) on Sunday increased the retail price of petrol by 28 paise per to Rs 83.41 a litre in Delhi. Similarly, diesel price also increased by 29 paise a litre to Rs 73.61 a litre.

With this, the current price of petrol in Delhi is just about 60 paise short of breaching the all-time high level of fuel of Rs 84 a litre reached on October 4, 2018. Given the rate the daily increase by OMCs, the milestone may be achieved early next week.

Across the country as well, the retail price of petrol is very close to all-time high levels and will breach the mark this week if retail prices continue to rise daily. In Mumbai, the all-time high petrol price was Rs 91.34 a litre recorded on October 4, 2018. The retail price of petrol there now is Rs 90.05.

The all-time high petrol price in Chennai and Kolkata has been Rs 87.33 and Rs 85.80 a litre and the current prices are Rs 86.25 and Rs 84.90 a litre respectively.

Ironically, the consistent increase in retail prices of the auto fuels -- petrol and diesel -- over the past fortnight taking it closer to all-time high levels comes at a time when the crude prices are almost $ 30 a barrel less than what was in October 2018, when petrol prices reached all time high levels last.

Global crude prices have firmed up recently over the news of successful coronavirus vaccine. It has risen almost $ 10 a barrel in the last one month to reach closer to $ 50 a barrel now. But even at this level, it is far less than the average crude price of $ 80.08 a barrel in October 2018 when petrol prices reached a high of Rs 84 a litre in the Capital.

With Sunday's increase, fuel prices have now increased on 14 of the past 17 days as the petrol price rose by Rs 2.35 per litre and diesel by 3.15 a litre. Petrol price had been static since September 22, and diesel rates hadn't changed since October 2.

Though retail pricing of petrol and diesel has been deregulated and oil marketing companies were following a daily price revision formula, the same was suspended for almost two months to prevent volatility in international oil markets from impacting fuel prices regularly during the pandemic.

But with crude on the boil again on news of a successful coronavirus vaccine launch soon, the patience was lost by OMCs who finally resorted to price increase to cover for their under recovery on the sale of two petroleum products.

The benchmark Brent crude has crossed $48 a barrel on the Intercontinental Exchange (ICE) lately. It has remained over $ 44 a barrel for most part of November.




(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel