Fuel retailers hike prices despite drop in global prices

NEW DELHI: Fuel retailers on Sunday raised pump prices of petrol and diesel for the eighth straight day by 62 paise per litre and 64 paise a litre, respectively, even as the international crude lost the rallying streak due to demand uncertainty.

Prices of petrol have jumped by ₹4.52 per litre and diesel by ₹4.64 a litre in Delhi since last Sunday after state-run oil companies ended the 82-day freeze on daily fuel rate revision.

Petrol is now sold in Delhi at ₹75.78 per litre and diesel at ₹74.03 a litre, according to the Indian Oil Corporation (IOC), India’s largest petroleum refiner and fuel retailer. Pump prices of two auto fuels maintained their upward movement since June 7 even as international benchmark Brent crude lost steam on Thursday, June 11 and fell by 7.6% to $38.55 a barrel. It closed at $38.73 on the last trading day. According to a Reuters report on June 9, Goldman Sachs expected Brent prices to fall again to $35 per barrel in the short term due to uncertainty.

Domestic consumers have seen a sustained spike in petrol and diesel rate as global oil prices started moving north after the Organisation of the Petroleum Exporting Countries (Opec) and its allies (Opec+)—on June 6 decided to extend record output cuts by one more month till the end of July. Abhishek Jain, tax partner at consultancy firm EY India, said: “With increase in crude prices and reintroduction of dynamic pricing, possible surge in prices could be controlled through downward tweaking of tax rates on petrol (both excise and VAT).” The Congress attacked the government for the hike and demanded that benefits be passed on to people.