Petrol, diesel prices hiked by 80 paise, third increase in four days

In Mumbai, the rate of petrol increased by 84 paise today, selling at Rs 112.51 per litre

The price of petrol and diesel in Delhi increased by 80 paise a litre each on Friday. Petrol is selling at Rs 97.81 per litre in the national capital while diesel is trading at Rs 89.07 per litre. This is the third increase in four days with total hike now is Rs 2.4/litre.

In Mumbai, the rate of petrol increased by 84 paise, selling at Rs 112.51 per litre. The price of diesel increased by 85 paise to Rs 96.70 per litre.  

This comes after the fuel rates were hiked by 80 paise each across the nation on Wednesday.

Chennai increased petrol and diesel prices 76 paise per litre each on Friday. Petrol is trading at Rs 103.67 per litre in Chennai, diesel is at Rs 93.71 a litre. 

In Kolkata, petrol is priced at Rs 106.34 per litre after an increase of 84 paise. Meanwhile, diesel is trading at Rs 91.42 a litre, after an increase of 80 paise.

The increase in fuel rates, the steepest single-day rise since the daily price revision was started in June 2017, comes after a record 137-day hiatus after the nation witnessed Assembly elections in five states. 

Oil companies are now recouping the losses as Moody's Investors Services says fuel retailers IOC, BPCL and HPCL together lost around $2.25 billion (Rs 19,000 crore) in revenue for keeping petrol and diesel prices on hold during elections in five states, news agency PTI reports.

CRISIL Research said a Rs 9-12 per litre increase in retail price will be required for a full pass-through of an average $100 per barrel crude oil and Rs 15-20 a litre hike if the average crude oil price rises to $110-120, PTI reports.

The ongoing war by Russia in Ukraine has sent crude oil prices to new heights. The cost of raw material (crude oil) has risen by $30 per barrel during the period. 

The central government raised the rate of bulk diesel by Rs 25 per litre last week. This resulted in increase in price for bulk users in Mumbai to Rs 122.05 per litre, as compared to Rs 96.70 per litre for individual buyers.