Rising gasoline and diesel prices continue unabated
Gasoline and diesel prices rose again on Monday, ending a full week of increases that took retail prices to record highs across the country.
In the nation’s capital, the price of gasoline rose by 30 paise per liter and diesel by 35 paise per liter. Gasoline and diesel prices have crossed the Rs 100 per liter mark in many states, pinching the pocket of the common man.
In Delhi, gasoline now sells for Rs 104.44 per liter and diesel is available at Rs 93.17 per liter after the latest price revision. On the other hand, in the financial capital of India, Mumbai, gasoline has become more expensive by 29 paise per liter and its rate stands at Rs 110.41, the highest of the four metropolitan cities. Diesel costs 101.03 rupees per liter in Mumbai, an increase of 37 paise.
For the past six days, gasoline and diesel prices have been rising steadily and rates have soared to an all-time high. Gasoline and diesel prices remained stable on October 4, 2021, but saw an increase thereafter.
Diesel prices have now risen for 15 of the past 18 days, raising its retail price to Rs 4.55 per liter in Delhi. Diesel prices have increased between 20 and 30 paisa per liter so far, but since Wednesday they have increased by 35 paisa per liter.
With the price of diesel rising sharply, fuel is now available at over Rs 100 per liter in several regions of the country. This dubious distinction was previously available for gasoline which had crossed the Rs 100 per liter mark across the country a few months earlier.
Gasoline prices had remained stable since September 5, but oil companies finally raised their prices at the pump last week and this week given a surge in commodity prices in recent times. Gasoline prices have also increased in 12 of the previous 14 days, raising its price at the pump by 3.25 rupees per liter.
The WTO had preferred to maintain their watch prices on the world oil situation before proceeding to any price revision. This is the reason why oil prices have not been revised in the past three weeks. But the extreme volatility of the movement of world oil prices has now prompted OMCs to effect the increase.
Across the country, gasoline and diesel also rose between 30 and 40 paisa per liter, but their retail prices varied depending on the level of local taxes in the state.
The price of crude has been on the rise for three years, to a record high of over $ 83.5 per barrel now. Since September 5, when gasoline and diesel prices were revised, the price of gasoline and diesel in the international market has been around $ 9-10 per barrel higher than average prices. of August.
According to the pricing formula adopted by the oil companies, the prices of gasoline and diesel must be reviewed and revised by them daily. The new prices come into effect from the morning at 6 a.m.
The daily price review and revision is based on the average price of the benchmark fuel in the international market over the previous 15 days and on exchange rates.
But, fluctuations in world oil prices have prevented OMCs from following this formula in their entirety and revisions are now being made with longer spreads. It has also prevented companies from raising fuel prices whenever there is a mismatch between the price of fuel arriving in the world and the price at the pump.