Diesel prices touched a new record high on Monday after the state-run oil companies including Indian Oil Corporation further hiked the prices in metros. The prices of petrol however, have remain untouched since June 29.
Diesel was retailing at Rs 81.05 per litre in national capital New Delhi and Rs 79.27 per litre in Mumbai after the oil firms hiked diesel prices by 11 paisa. This is the first time in the history of diesel price that the fuel has crossed Rs 81 per litre mark. Meanwhile, petrol prices stood at Rs 80.43 per litre in Delhi and Rs 87.19 per litre in Mumbai, according to notifications from Indian Oil Corporation, the country’s largest fuel retailer.
That the price of diesel is higher than petrol in the country is also a rare occurrence. However, except New Delhi, prices of petrol continue to remain higher than that of diesel in other metros.
After nearly seven weeks of hiatus, on June 7, Indian Oil, Hindustan Petroleum and Bharat Petroleum — which together account for the majority of fuel stations in the country — returned to the normal practice of daily price reviews after economic activities started to pick up amid an easing of coronavirus lockdown.
Domestic petrol and diesel prices vary from state to state due to value added tax (VAT) and oil companies review the rates on a daily basis. The reviews are based on the change in international crude oil rates. Also, the rupee-dollar foreign exchange rate also accounts for changes in fuel prices which are implemented from 6 am. Meanwhile, oil prices slipped in early Asian trade on Monday amid expectations of an OPEC technical meeting this week. It is likely that a recommendation will be made to ease supply cuts which have largely caused a jump in crude prices. Global oil rates fell to historic lows of $15.98 per barrel in April 2020.