HomeBusinessFuel prices hit fresh record on crude shock - Times of India

Fuel prices hit fresh record on crude shock – Times of India

NEW DELHI: Fuel prices hit fresh records on Friday after retailers raised pump rates of petrol by 25 paise a litre and diesel by 30 paise a litre as the impact of crude hitting $80 per barrel recently hit home.
The sixth revision in eight days pushed diesel price beyond Rs 100 per litre in five states and petrol price to all-time high across the country.
In Delhi, which has comparatively lower VAT rates, petrol hit its highest-ever at Rs 101.89 a litre and Rs 107.95 in Mumbai.
Diesel price rose to a record Rs 90.17 in Delhi and Rs 97.84 in Mumbai. It shot past Rs 100 in several cities in Rajasthan, Madhya Pradesh, Odisha, Telengana and Andhra Pradesh. Prices vary in states due to different VAT rates and freight charges.
Fuel prices are moving up when assembly polls are round the corner in UP, a politically important state for the BJP. This has stoked fears among the oil company management, that the oil ministry may informally ask them to hold the price line as in thee past, which will lead to under-recovery.
Fuel prices had remained stagnant for 67 days since July 17 as retailers held back daily revisions, even though crude headed north with a few brief lulls in August. Between May 4 and July 17, petrol price was increased by Rs 11.44 a litre and diesel by Rs 9.14.
While retail rates were not raised to reflect higher crude prices, they were promptly reduced the few times oil slipped. Between August 18 and September 5, petrol price was reduced four times and diesel seven times, which made petrol cheaper by 65 paise a litre and diesel by Rs 1.25 in Delhi.
The retailers started raising prices on September 24 as crude tested a three-year high at $80 a barrel in a market growing tighter amid rising demand. Since then, diesel price has risen by Rs 1.55 per litre and petrol by 75 paise.
Even though crude has shown some composure in recent days due to concerns over demand growth, fuel prices are rising now because of a 15-day lag before oil’s movement reflects in pump rates.

Stay Connected
Must Read
You might also like


Please enter your comment!
Please enter your name here