Petrol, diesel prices set for more hikes as jet fuel price jump by nearly 7%

Jet fuel price on Saturday was hiked by steep 6.7 per cent, reversing price cuts of last month, while an increase in petrol and diesel prices may be on the anvil as international prices firmed up.

Aviation turbine fuel (ATF) price was increased by ₹3,885 per kilolitre (kl), or 6.7 per cent, to ₹61,690.28 per kl in the national capital, according to a price notification of state-owned fuel retailers.

Rates vary from state to state depending on incidence of local taxes.

The increase in price comes after two rounds of reduction last month. Prices were cut by 3 per cent on April 1 and then again by ₹568.88 per kl (1 per cent) on April 16.

Meanwhile, petrol and diesel prices remained unchanged for the 16th day on Saturday but oil company officials indicated an increase in rates in near term.

Despite the concerns about rising Covid-19 cases in India denting demand, crude oil prices in the international market continue to rise on account of strong US demand recovery and a weak dollar.

"Prices have been on a continuous uptrend for last 4 days (since April 27)," an official said adding Dubai crude oil price has risen USD 2.91 per barrel.

It is expected that the crude oil prices in the international market will remain firm in the near future, exerting upward pressure, officials said.

State-owned fuel retailers, IOC, BPCL and HPCL, who are supposed to revise rates daily based on input cost, froze rates after a marginal reduction in prices on April 15. This came as electioneering in West Bengal peaked.

Petrol now costs ₹90.40 per litre in Delhi, while a litre of diesel comes for ₹80.73.

The April 15 cut of 16 paise a litre on petrol and 14 paise on diesel was fourth reduction since March 24. In four reductions since March 24, petrol price was cut by 67 paise and diesel by 74 paise.

This reduction compared with a ₹21.58 per litre increase in price of petrol since the government raised excise duty in March last year. Diesel prices had increased by ₹19.18 a litre.

While petrol and diesel prices are revised on a daily basis, ATF rates are revised on the 1st and 16th of every month.

Central and state taxes make up for 60 per cent of the retail selling price of petrol and over 54 per cent of diesel. The union government levies ₹32.90 per litre of excise duty on petrol and ₹31.80 on diesel.

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