Petrol prices were hiked for the second consecutive day on Monday, July 5, 2021, touching a record high across the country, while diesel rates were kept unchanged. In the national capital, the petrol price rose by 35 paise.
Following the latest price revision, petrol in Delhi inched near the Rs 100 per litre mark and is now retailing at Rs 99.86 while diesel continues to sell at Rs 89.36. In the financial capital Mumbai, petrol price now stands at Rs 105.92 while diesel costs Rs 96.91, data available on Indian Oil Corporation’s website showed.
This marks the third increase in petrol prices this month, while diesel rates have been hiked once so far in July. In June, both petrol and diesel prices were hiked 16 times which followed the 16 hikes during May. Prices have been on the rise since May 4 after oil marketing companies (OMCs) resumed their price revisions ending an 18-day hiatus that coincided with the assembly elections in five key states. During this period, petrol price has increased by Rs 9.46 per litre and diesel has climbed by Rs 8.63 in New Delhi.
On Sunday, the petrol rate was increased by 35 paisa per litre and diesel by 18 paise a litre, according to a price notification from state-owned fuel retailers.
Following the recent hikes since May 4, the price of petrol has crossed the Rs 100-per-litre mark in at least 14 states and union territories including Rajasthan, Madhya Pradesh, Maharashtra, Andhra Pradesh, Telangana, Ladakh, Karnataka, Jammu and Kashmir (J&K), Odisha, Tamil Nadu, Bihar, Kerala, Punjab and Sikkim.
Bhopal became the first state capital to have petrol hit the three-figure mark in May, followed by jaipur and Mumbai In June, Hyderabad and Bengaluru had also joined them followed by Patna and Thiruvananthapuram. Earlier this month, Chennai too joined this list and now Delhi and Kolkata are inches away from hitting the psychological landmark with petrol retailing at Rs 99.86 and Rs 99.84 respectively.
Petrol and diesel rates are at the highest in the country in Sri Ganganagar district of Rajasthan where petrol comes for Rs 111.14 a litre. Diesel here touched the three figure mark in June and currently is retailing at Rs 102.60 per litre, the Indian Oil data showed. In Madhya Pradesh’s Anuppur district, petrol today is priced at Rs 110.73 a litre and diesel at Rs 100.51.
In India, the fuel prices differ from state to state depending on the local taxation (VAT) and freight charges. Apart from this, the central government charges an excise duty on auto fuels.
The OMCs revise rates of petrol and diesel daily based on the average price of benchmark fuel in the international market in the preceding 15-days, and foreign exchange rates.
In the international market, crude oil prices fell on Monday, with Brent dropping after four days of gains, as investors and traders awaited crucial talks by OPEC+ following disagreement within the group that could lead to major producers pumping up volumes to grab market share, news agency Reuters reported earlier in the day.
Brent crude was down by 40 cents (0.5 per cent) at $75.77 a barrel by 0131 GMT, after falling 1 cent last week, the first weekly decline in six. US oil was down by 30 cents (0.4 per cent) at $74.86 a barrel, having risen 1.5 per cent last week, the sixth consecutive week of gains for the contract, the report said.