NEW DELHI :
State-owned oil marketing companies (OMCs) raised petrol and diesel prices for the second day in a row on Wednesday.
This is the second hike in transportation fuel prices since 23 February. As a result, petrol and diesel prices in Delhi were increased by 19 paise per litre and 21 paise per litre respectively. Petrol and diesel were retailing at Rs90.74 per litre and Rs81.12 per litre respectively on Wednesday in Delhi at state run Indian Oil Corporation Ltd’ outlets.
The cost of the Indian basket of crude, which comprises Oman, Dubai and Brent crude, was at $66.63 a barrel on 4 May. Following the covid outbreak, crude prices for Indian basket of crude had plunged to $19.90 in April last year before recovering to $63.40 a barrel in April, data from the Petroleum Planning and Analysis Cell showed.
Interestingly, the diesel and petrol retail prices in India have remained subdued during the assembly elections in West Bengal, Assam, Kerala, Tamil Nadu, and Puducherry, with three government-run oil marketing companies—Indian Oil Corp. Ltd (IOCL), Bharat Petroleum Corp. Ltd (BPCL) and Hindustan Petroleum Corp. Ltd (HPCL)—refraining from raising prices.
The state-run OMCs and the government have maintained that there is no correlation between elections and transportation fuel price freeze. The government’ stand has been that it has got no role in pricing since India’s three government-run OMCs introduced dynamic fuel pricing, joining countries such as the US and Australia, where fuel prices change daily depending on global oil price fluctuations.