Diesel price on Monday was hiked again by 24 to 26 paise per litre. This is the third increase after the state-owned oil firms ended a three-week hiatus in rates following international oil prices surging to their highest since 2018. Petrol prices, however, remained unchanged for the 22nd consecutive day.
In Delhi, diesel costs Rs 89.07 per litre after a hike of 25 paise. Petrol is retailing at Rs 101.19 per litre. In Mumbai, one has to pay Rs 107.26 for a litre of petrol and Rs 96.68 for a litre of diesel after an increase of 27 paise.
In Chennai, a litre of petrol is priced at Rs 98.96. On Sunday, the price of a litre of diesel was Rs 93.69 per litre. Petrol in Kolkata is retailing at Rs 101.62 per litre while diesel at Rs 92.17.
Fuel prices have been hovering at record levels on account of 41 increases in its retail rates since April this year. It fell on a few occasions but largely remained stable.
On Sunday, global benchmark Brent crude rose over $78 a barrel. Oil rates are up 2 per cent for the week and this is the fifth weekly gain. Since September 5, when both petrol and diesel prices were revised, the price of petrol and diesel in the international market is higher by around $6-7 per barrel as compared to average prices during August.
Under the pricing formula adopted by oil companies, rates of petrol and diesel are to be reviewed and revised by them on a daily basis. The new prices become effective from morning at 6 am.
The daily review and revision of prices is based on the average price of benchmark fuel in the international market in the preceding 15-days, and foreign exchange rates. But, the fluctuations in global oil prices have prevented OMCs to follow this formula in totality and revisions are now being made with longer gaps. This has also prevented companies from increasing fuel prices whenever there is a mismatch between globally arrived and pump price of fuel.