Petrol, diesel prices rise for third straight day across metros

Andrew Cummings
November 23, 2020

In Mumbai, the petrol price was raised to ₹88.16 per litre, from ₹88.09, while diesel rates went up from ₹77.34 to ₹77.54.

Despite increasing price in the global market, the oil manufacturing companies had chose to hold prices of petrol and diesel since the end of September this year. In the national capital, petrol is being sold for Rs. 81.23 per litre, an increase of 17 paise from the last price, while diesel quotes at Rs. 70.68, which marks an increase by 22 paise.

Before that petrol prices had remained unchanged since September 22, and diesel rates hadn't changed since October 2. At a time when globally prices change by the hour, in India it could be kept static for such a long period. The 58-day hiatus in petrol price revision and the 48-day status quo on diesel rates were preceded by no change in rates between June 30 and August 15 and a 85-day status quo between March 17 and June 6.

However, in contrary, the upside remained capped and the prices did not rise much amid worries that surging covid-19 cases in the USA and Europe could witness renewed restrictions and could dent demand for the fuel. With the price revision, the retail price of both the auto fuels has also been increased across the country but the level of increase is different across the cities due to variable taxation structure pursued by the states. Now that the option is exhausted, regular price revision has resumed.

State-owned fuel retailers started raising fuel prices from Friday.

OMC sources said that the auto fuel hike may not end just yet and the price of the two petroleum products may increase gradually over the next week as well. Moreover, the demand for oil and falling inventory levels in major consuming markets has also firmed up the crude price. This is to prevent OMCs from incurring losses on the sale of auto fuel. The benchmark brent crude is moving around more than $44 per barrel while the US WTI is quoting at almost $42 per barrel.

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