The prices of petrol and diesel were hiked by 60 paisa per litre across the country on Monday as state-owned oil firms resumed daily rate revisions after 82 days the previous day, PTI reported. While the price of petrol in Delhi was increased from Rs 71.86 per litre to Rs 72.46 per litre, the rate of diesel went from Rs 69.99 to Rs 70.59.
This is the second day in a row when fuel prices increased. On Sunday, oil companies had raised the prices by 60 paisa per litre for both petrol and diesel.
Oil Public Sector Undertakings have been regularly revising the price of aviation turbine fuel and that of liquefied petroleum gas. But the rates of petrol and diesel were put on hold on account of the extreme volatility in the international oil markets because of the coronavirus pandemic.
More importantly, no airline operated between mid-March to May 25 in view of the restrictions placed to check the spread of the coronavirus and yet oil companies have continued to revise downward jet fuel prices.
Diesel sales by state-run fuel retailers in May were down about 31%, while petroleum sales dropped by 36%, according to Reuters. In April, the country’s gasoline sales were 60.6% lower, while diesel sales dropped 55.6%.
The price of auto fuel was frozen soon after the government raised excise duty on petrol and diesel by Rs 3 per litre each to mop up gains arising from plummeting international rates. Then on May 6, the government again raised excise duties by Rs 10 per litre on petrol and Rs 13 for a litre of diesel. However, it had assured the people that the change will not result in an increase in retail prices for the consumers as state-owned oil firms will adjust the hike against the recent fall in oil prices.
Oil companies, instead of passing on the excise hike to consumers, decided to adjust them against the reduction required because of the drop in international oil prices. They used the same tool and did not pass on the Re 1 per litre hike required for switching over to ultra-clean BS-VI grade fuel from April 1.