Petrol and diesel prices were hiked again on Sunday to send rates soaring to new record high Government officials insisted oil companies haven’t passed on the entire increase warranted from international oil and gas rising to three-year highs and have ensured UK-like situation of pumps going dry isnt seen anywhere in India.
Petrol price for the third straight day hiked by 25 paise a litre and diesel by 30 paise, according to a price notification of state-owned fuel retailers.
This sent petrol price in Delhi to its highest ever level of ` 102.39 a litre and to ` 108.43 in Mumbai. Diesel rates too touched a record high of ` 90.77 in Delhi and `98.48 in Mumbai.
Prices differ from state to state depending on the incidence of local taxes.
Petroleum Secretary Tarun Kapoor said oil companies are taking their own decision on aligning retail rates with the cost but they are ensuring extreme volatility is avoided.
“We are watching the situation and trying to ensure the impact of global volatility is moderated to a large extent,” he said.
The basket of crude oil India buys has jumped to a near three-year high of USD 76.71 per barrel. International prices of petrol, against which local rates are benchmarked, have risen from USD 85.10 per barrel to USD 87.11 in just one day while diesel has gone up from USD 85.95 a barrel to USD 87.27.
This sudden spike in international oil prices follows global output disruptions but the entire increase in retail rates necessitated by such an increase is not being effected, another official with direct knowledge of the matter said.
“Just look at LPG rates. They have gone up from USD 665 to USD 797 in one month but oil companies haven’t passed on the increase warranted from that,” he said adding state-owned companies were absorbing a lot of volatility.