Yet another hike in fuel prices across the country on Friday saw petrol rates go past ₹93 per litre in Delhi and inch precariously close to the triple-digit mark in Mumbai. Petrol and diesel prices in the country have been rising incessantly through the month since May 4 and have reached record figures in most parts.
A 19 paise hike in petrol price on Friday in Delhi saw the rate at fuel stations read ₹93.04 per litre. Diesel rates surged by 29 paise and will now cost ₹83.51 per litre here.
Motorists in Delhi are still better off compared to those in Mumbai who now have to shell out ₹99.32 for one litre of petrol. This after an 18 paise hike in rate on Friday. Diesel prices were hiked by 30 paise and is now at ₹91.01 per litre.
Petrol and diesel rates in Chennai are now at ₹94.71 and ₹88.62 per litre, respectively while these are ₹93.11 and ₹86.64 in Kolkata.
Oil companies are responsible for determining the daily rate of petrol and diesel in the country but it is widely known that high central and state taxed and levies form the bulk of the amount charged to end customers.
International crude prices and currency exchange rate also have an impact on fuel prices in India but favourable conditions have not always led to a fall in prices. More recently, reports of revival in supplies from Iran have meant brent crude has dropped to below $66 from a little over $70 earlier in the week. But its benefits for consumers in India, if any at all, is yet to be extended.
Lockdown and curfews, however, have also meant that demand for oil has come down significantly. Bloomberg recently reported that in the first 15 days of May, demand for automotive fuel fell by a fifth compared to the first 15 days of the previous month. The International Energy Agency has also lowered its 2021 global oil demand forecast.