In Mumbai, the price of petrol saw a rise of 52 paise and is now Rs 80.01 per litre. While diesel prices have reached 69.92 per litre an increase of 55 paise.
Last month the central government had raised the excise duty of petrol by Rs 10 per litre and diesel by Rs 13 per litre. But the companies had said that this increase will not be passed on to the customer. According to an IANS report, the revision of the prices falls under the dynamic pricing system of transportation fuel which the oil marketing companies resumed after 83 days break during the lockdown period.
On Monday the price of petrol and diesel was hiked by 60 paise per litre and it was the second hike in the fuel prices in order to tackle the rise in global product prices. In the capital city, the retail price of both petrol and diesel was increased by 60 paise rise to Rs 72.46 and Rs 70.59 per litre respectively. The report said that the last time the fuel prices saw a revision under the dynamic pricing policy was on March 16. Few states hiked VAT or cess in an attempt to increase revenue during the nationwide lockdown.
The IANS report also said that the gap between cost and sale price of petrol and diesel for OMCs has reached around Rs 4-5 per litre. As there is no further increase in global fuel prices, there might be an increase of 40-60 paise per day for a couple of weeks to cover the losses. The prices in daily revision depend on the global oil prices at the time. Going by the current trend, crude prices are way above price levels in April when even benchmark Brent crude had slipped below $20 a barrel. Brent is now trading at over $41 a barrel.
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