Petrol, diesel prices hit all-time high after fresh hike

India: Petrol and diesel prices were hiked again on Sunday to send rates soaring to new record highs across the country but top government officials insisted oil companies haven’t passed on the entire increase warranted from international oil and gas rising to three-year highs and have ensured a UK-like situation of pumps going dry isn’t seen anywhere in India.

Petrol price for the third straight day hiked by 25 paise a litre and diesel by 30 paise, according to a price notification of state-owned fuel retailers. This sent the petrol price in Delhi to its highest ever level of Rs 102.39 a litre and to Rs 108.43 in Mumbai. Diesel rates too touched a record high of Rs 90.77 in Delhi and Rs 98.48 in Mumbai.

Prices differ from state to state depending on the incidence of local taxes. Petroleum Secretary Tarun Kapoor said oil companies are taking their own decision on aligning retail rates with the cost but they are ensuring extreme volatility is avoided.

“We are watching the situation and trying to ensure the impact of global volatility is moderated to a large extent,” he said.

The basket of crude oil India buys has jumped to a near three-year high of USD 76.71 per barrel. International prices of petrol, against which local rates are benchmarked, have risen from USD 85.10 per barrel to USD 87.11 in just one day while diesel has gone up from USD 85.95 a barrel to USD 87.27.

This sudden spike in international oil prices follows global output disruptions but the entire increase in retail rates necessitated by such an increase is not being affected, another official with direct knowledge of the matter said.