Oil marketing companies increased the price of petrol for third consecutive day last week on Saturday, taking petrol prices in Mumbai to Rs 88.02 a litre. This was sixth time that the fuel price was raised in seven days. In Delhi, petrol was Rs 81.35 a litre. Diesel prices, however, continued to remain steady for 23 days in a row, just like it was for petrol prices in July.
Petrol prices were kept on hold since June 29, while diesel prices were revised irregularly throughout the period. Petrol prices were revised on August 16 after a long pause. Since, then there has been a consistent increase in petrol rates.
Since August 16, petrol prices have been raised by a margin of 92 paise per litre. Diesel prices have remained stable since the Delhi government announced 13.25 per cent reduction in the Value Added Tax on July 30, which had caused the price to fall by Rs 8.36 per liter. Diesel is priced at Rs 73.56 a litre in the capital.
Currently, fuel prices vary in different parts of the country due to factors such as crude oil and foreign exchange rates. Three state-run oil marketing companies – Indian Oil, Bharat Petroleum and Hindustan Petroleum – account for the majority of petrol and diesel stations in the country.
The three companies implement any revisions in the prices with effect from 6 am every day. Meanwhile, oil prices are falling globally as major producers warn of a risk to the recovery in demand if the coronavirus crisis is prolonged. U.S. crude inventories also dropped less than expected, adding to the weakening of crude prices.