New Delhi, May 5 (IANS): Petrol and diesel prices in the country rose again sharply by 19 paise and 21 paise per litre respectively on Wednesday as Oil Marketing Companies (OMCs) continued to cover for their losses on holding back price rise for past 18 days due to state elections.
This is second increase in fuel prices in as many days as petrol and diesel prices rose by 15 paisa and 18 paisa per litre respectively even on Tuesday after a 18 days break.
With Wednesday's increase, petrol is now being retailed at Rs 90.74 a litre and diesel Rs 81.12 a litre in the national Capital.
Across the country as well the petrol and diesel price increased on Tuesday but its quantum varied depending on the level of local levies in respective states.
IANS had written earlier that OMCs may begin increasing the retail price of petrol and diesel post state elections as they were incurring losses to the tune of Rs 2-3 per litre by holding the price line despite higher global crude and product prices. The oil companies had already increased the ATF prices by 6.7 per cent effective this month.
OMCs benchmark retail fuel prices to a 15-day rolling average of global refined products' prices and dollar exchange rate. In the last fortnight global oil prices have hovered in $66-67 a barrel range higher than the levels when petrol and diesel prices were last revised. Crude prices have jumped over $69 a barrel on Wednesday.
The price of the two auto fuels had fallen by 16 paise and 14 paise per litre respectively on April 15 after a 15 day break when OMCs kept its prices static. Thereafter revision of fuel prices have been halted.
The OMCs went on price cut for the first time this year on two consecutive days - March 24 and 25 after keeping oil prices steady for past 24 days. It again reduced the price on March 30. Thereafter, fuel prices have remained unchanged for past 15 days before falling again on April 15. In all petrol prices have fallen by 77 paise per litre while diesel by 74 paise per litre in 2021 so far.
Earlier, petrol and diesel prices increased 26 times in 2021 with the two auto fuels increasing by Rs 7.46 and Rs 7.60 per litre respectively so far this year.
With global crude prices at over $69 a barrel mark, OMCs may have revise fuel prices upwards again if there is any further firming up.