Petrol and diesel prices rose sharply by 25 paise per litre on Wednesday after oil marketing companies chose to break the momentary pause in the wake of a sudden spike in the global oil prices. On January 7, the price of petrol in Delhi reached a record Rs 84.20 per litre.
The oil companies increased the prices of both fuels on 06 and 07 January after prices remained stable for 29 days.
Brent crude, the global benchmark for oil prices was up 47 cents, or 0.8%, to $57.05 per barrel, after having risen 1.7% in the previous session.
Petrol in Mumbai today has reached Rs 91.07 per litre, which is just 27 paise less than the record price of Rs 91.34 on October 4, 2018. On that day, diesel too had scaled to an all-time high of Rs 75.45 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).
The government had responded to that situation by cutting excise duty on petrol and diesel by Rs 1.50 per litre in a bid to ease inflationary pressure and boost consumer confidence. Alongside, state-owned fuel retailers cut prices by another Re 1 a litre, which they recouped later.
Across the country as well the pump price of petrol and diesel increased on Wednesday but the quantum varied depending on the prevailing tax structure in each state.
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.
As the petrol price in Mumbai has crossed ₹91-mark, the budget of Mumbaikars will collapse due to this.
Excise duty totals Rs 32.98 per litre in petrol and Rs 31.83 in diesel. Today more people are reading Kashmir Observer than ever, but only a handful are paying while advertising revenues are falling fast.