Gasoline and diesel prices hit record highs across the country on Thursday after rates were hiked by 25 paise and 30 paise per liter respectively. The price of gasoline has been increased to Rs 101.64 per liter in Delhi and Rs 107.71 per liter in Mumbai, according to a price notification from state-owned fuel retailers.
Diesel prices have increased to Rs 89.87 per liter in Delhi and Rs 97.52 in Mumbai. Prices differ from state to state depending on the incidence of local taxes.
This is the second increase in gasoline prices since the end of a three-week hiatus in tariff revision and the fifth in the case of diesel.
The increase took the retail price of gasoline to near an all-time high. Gasoline hit a record high of Rs 101.84 per liter in Delhi in July and Rs 107.83 in Mumbai. For diesel, the increase led to tariffs equaling the all-time high of Rs 89.87 per liter hit in Delhi the same month.
International oil prices are at their highest level in three years, with global benchmark Brent trading at $ 78.64 per barrel.
This surge in global rates led state-owned companies Indian Oil Corp (IOC), Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL) to resume daily price revisions on September 24, ending the break in rates effective from September. 5.
In five price increases since September 24, diesel prices have increased by 1.25 paise per liter, reversing all price reductions that occurred between July 18 and September 5. The price of gasoline rose 50 paise per liter in two installments this week. Before that, the price of diesel was last increased on July 15. The last gasoline rate hike was on July 17th.
International crude oil prices hit an almost three-year high as global production disruptions forced energy companies to remove more crude oil from their inventories. When international oil prices fell in July and August, retail gasoline and diesel prices in the Delhi market were reduced by Rs 0.65 and Rs 1.25 per liter.
Before that, the price of gasoline had been increased by Rs 11.44 per liter between May 4 and July 17. The price of diesel had increased by Rs 9.14 during this period.
Rising prices during this period pushed gasoline prices above the Rs 100 per liter mark in more than half of the country, while diesel broke that level in at least three states. India depends on imports to meet nearly 85% of its oil needs and therefore compares local fuel prices to international oil prices.
(With contributions from agencies)
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