Petrol, Diesel Prices Hiked By 60 Paise Per Litre For Second Consecutive Day

Retail price of both petrol and diesel in Delhi to witness 60 paise rise to Rs 72.46 and Rs 70.59 per litre, respectively, while in other cities, the increase could vary depending on the tax structure on products.

Representational Picture (AFP)

New Delhi: With the opening of the economy and transportation activities set to resume in full swing, petrol and diesel prices are going to pinch your pocket more as oil marketing companies on Monday hiked the price of petrol and diesel by 60 paise per litre. It is the second hike in the fuel prices in order to tackle the rise in global product prices. Unlock 1.0: Malls, Restaurants, Places Of Worship Reopen With Caution; Here’s All You Need To Know The price has been incressed under the dynamic pricing system for daily revision of fuel prices, which OMCs resumed after over the 80-day break during the lockdown period, according to the news agency IANS. In the capital city, the retail price of both petrol and diesel to witness 60 paise rise to Rs 72.46 and Rs 70.59 per litre respectively. In other cities, the increase could vary depending on the tax structure on products. The agency had earlier hinted at the daily price revision which may begin in June and retail prices of petrol and diesel likely to witness Rs 5 a litre hike in phases. In two days it has already gone up by Rs 1.20 per litre. Last time the fuel prices saw a revision under the dynamic pricing policy on March 16 even as few states hiked VAT or cess in an attempt to increase revenue during the nationwide lockdown. In fact, the gap between the cost and sale price of petrol and diesel for the OMCs comes around Rs 4-5 per litre. The OMCs can further increase the prices to cover this gap over a period of time if there is no further increase in global prices. It can witness a rise by 40-60 paise per day for a couple of weeks to cover the losses, according to the agency. The retail price rise depends largely upon prevailing oil prices and the global oil market at that 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 $42 a barrel. However, lockdown has also curved demand for auto fuel. This could maintain some check on prices. Raising retail prices became important for the OMCs now as the recent steep excise duty hike without the resultant increase in petrol and fiscal prices, had substantially brought down its marketing margins from a record high level of Rs 12-18 per litre. In case the companies are not able to raise prices given the rising global crude prices, it would start incurring losses that will get steeper.