Petrol price up 15 paise, diesel 18 paise after two-week hiatus

New Delhi, May 4

Petrol price on Tuesday was increased by 15 paise per litre and diesel by 18 paise as state-owned fuel retailers started passing on the increase in international oil prices to consumers after an 18-day hiatus.

Petrol now costs Rs 90.55 per litre in Delhi, up from Rs 90.40, according to a price notification of state-owned fuel retailers.

A litre of diesel comes for Rs 80.91, as against Rs 80.73 previously.

Rates have been increased across the country and vary from state to state depending on the local incidence of taxation (VAT).

Oil companies, which have in recent months resorted to unexplained freeze in rate revision, had hit a pause button after cutting prices marginally on April 15. This coincided with electioneering hitting peak to elect new governments in five states, including West Bengal.

No sooner had voting ended, oil companies indicated an impending increase in retail prices in view of firming trends in international oil markets.

Despite the concerns about rising Covid cases in India denting demand, crude oil prices in the international market have risen primarily on account of strong US demand recovery and a weak dollar.

Prices have been on a continuous uptrend since April 27, an industry official said, adding that Dubai crude oil price had risen by USD 2.91 per barrel.

It is expected that the crude oil prices in the international market would remain firm in the near future, exerting upward pressure, he said.

State-owned fuel retailers - Indian Oil Corporation Ltd (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) - are supposed to revise rates daily based on input cost. PTI