Fuel rates in the country increased sharply by 19 paise per litre for petrol and 21 paise for diesel on Wednesday, May 5 as Oil Marketing Companies (OMCs) continued to cover for their losses on holding back price rise for the past 18 days due to state elections.
Prices of petrol and diesel were hiked for the second consecutive day on May 5 after a long hiatus. Yesterday, prices rose by 15 paisa and 18 paisa per litre respectively after an 18-days break.
With today's hike, petrol is now being retailed at INR 90.74 a litre and diesel INR 81.12 a litre in the national capital.
Meanwhile, in Mumbai, the prices increased to INR 97.12 per litre and INR 88.19 per litre for petrol and diesel, respectively.
According to reports, OMCs may begin increasing the retail price of petrol and diesel post-state elections as they were incurring losses to the tune of INR 2-3 per litre by holding the price line despite higher global crude and product prices. The oil companies had already increased the ATF prices by 6.7 per cent effective this month.
Earlier, the price of the two auto fuels had fallen by 16 paise and 14 paise per litre respectively on April 15 after a 15-day break when OMCs kept its prices static. Thereafter revision of fuel prices has been halted.
The OMCs went on price cut for the first time this year on two consecutive days - March 24 and 25 after keeping oil prices steady for the past 24 days. It again reduced the price on March 30. Thereafter, fuel prices have remained unchanged for the past 15 days before falling again on April 15. In all petrol prices have fallen by 77 paise per litre while diesel by 74 paise per litre in 2021 so far.
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