Petrol and Diesel Price Hiked for Second Day in a Row

Marco Green
November 22, 2020

Petrol price on Saturday was hiked by 15 paise per litre and diesel by 20 paise, the second straight day of increase in rates after firming worldwide oil rates broke almost a two-month-long hiatus in price revision.

In Mumbai, the petrol price on Friday was raised to Rs 87.92 per litre from Rs 87.74, while diesel rates went up from Rs 76.86 to Rs 77.11. This implies that in the current landscape auto fuel prices should be higher by as much as Rs. 1.2 per litre.

While the last revision done to the petrol prices was on September 22, the diesel rates last changed on October 2.

Petrol price in Delhi was hiked to Rs 81.23 per litre from Rs 81.06, according to a price notification from oil marketing companies.

The Oil Marketing Companies (OMCs) in India such as Indian Oil Corporation, Bharat Petroleum Corporation, and Hindustan Petroleum Corporation - follow benchmark worldwide oil price and foreign exchange rate to revise rates of petrol and diesel on a daily basis. Also, demand for oil as well as inventory levels which have gone down in major consuming nations has also led to the surge in global crude prices.

Oil prices rose about 1% on Friday, posting a third consecutive weekly rise, buoyed by successful COVID-19 vaccine trials though renewed lockdowns in several countries to limit the spread of the coronavirus capped gains. The benchmark brent crude is moving around more than $44 per barrel while the US WTI is quoting at almost $42 per barrel. The two have remained firm since the beginning of the month after remaining soft in most parts of October at close to $40 a barrel or less.

The basket of crude oil that India buys has averaged around United States dollars 40 per barrel in October as against USD 41.35 in the previous month.

Other reports by Click Lancashire

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