Petrol, diesel prices hiked again

Andrew Cummings
January 13, 2021

For a litre petrol and diesel prices spiked by 25 paise and 27 paise respectively.

In the national capital, the price of petrol was increased by 25 paise from Rs 84.20 per litre to Rs 84.45 per litre and diesel was hiked by a similar amount from Rs 74.38 per litre to Rs 74.63 per litre, according to Indian Oil Corporation, the country's largest fuel retailer. After this, petrol reached a new record level of Rs 84.45 in Delhi today.

State-owned fuel retailers - Indian Oil Corporation Ltd (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) - had on January 6, resumed daily price revision after almost a month-long hiatus. On January 6 and 7, the petrol price was 49 paise, while that of diesel's hiked by 51 paise.

But, the OMCs ran out of patience on Wednesday as global crude prices have risen sharply lately taking benchmark Brent crude price to over $57 a barrel now and rising. From Monday onwards, the petrol price has been hovering past Rs. 74 a litre. It is the seventh consecutive day of gains for the benchmark and is trading at the highest since February (before COVID-19 began spreading beyond China). In Kozhikode, it is Rs 84.66 and for diesel, it is Rs 78.77. On that day, diesel too had scaled to an all-time high of Rs 75.45 a litre. Similarly in Kolkata, petrol has reached Rs 85.92 and diesel Rs 78.22 and in Chennai, petrol has reached Rs 87.18 and diesel Rs 79.95. Earlier on 4 October 2018, the price of petrol in the capital was at a record level of ₹84 per litre.

Oil companies executives said that petrol and diesel prices may increase further in coming days as retail prices may have to be balanced in line with global developments to prevent OMCs from making losses on the sale of auto fuels.

Since May 2020, petrol price has risen by Rs 14.79 per litre and diesel by Rs 12.34 a litre, price notifications of oil companies showed.

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