On Tuesday, fuel prices were raised for the seventh time in the last eight days. According to a price notification issued by state fuel merchants, petrol prices in Delhi have been increased by 80 paise a litre to cross the 100 mark, and diesel prices have been increased by 70 paise a litre.
Petrol will now cost 100.21 per litre in the national capital, up from 99.41 previously, while diesel will cost 91.47 per litre, up from 90.77 previously.
Petrol will be sold for 115.04 a litre in Mumbai, while diesel will be sold for 99.25 per litre. Mumbai continues to have the highest fuel prices among metro cities. Because of the value-added tax, prices differ between states (VAT).
Despite the rise in crude oil prices, fuel prices have remained stable for over four months. On March 22, the rate revision came to an end.
According to Moody’s Investors Services, state merchants collectively lost roughly $2.25 billion (Rs 19,000 crore) in revenue due to the holding of petrol and diesel prices throughout the election period.
During the assembly elections in Uttar Pradesh, Punjab, Uttarakhand, Goa, and Manipur, the rates were held steady.
At an underlying crude price of $100-120 per barrel, oil companies will need to boost diesel prices by 13.1-24.9 per litre and petrol prices by 10.6-22.3 per litre, according to Kotak Institutional Equities.
According to CRISIL Research, a 100% pass-through of an average $100 per barrel crude oil will require a 9-12 per litre increase in retail pricing, and a 15-20 per litre increase if the average crude oil price rises to $110-120.
State-run oil refineries such as Indian Oil, Bharat Petroleum, and Hindustan Petroleum adjust fuel prices on a daily basis, taking into account international crude oil prices and rupee-dollar exchange rates. Every day at 6 a.m., any adjustments in gasoline and diesel prices take effect.
India relies on imports for 85 percent of its oil needs, and domestic gasoline and diesel prices are tied to international rates.
Oil prices fell today as Ukraine and Russia headed for peace negotiations, as well as concerns about a decline in fuel demand in China following the financial capital of Shanghai shutting down to halt a Covid-19 spike. Brent crude futures were trading at $111.30 a barrel, down $1.18 or 1.1 percent. West Texas Intermediate (WTI) crude futures in the United States were down $1.09, or 1%, at $104.87. On Monday, both benchmark contracts fell about 7%.