Petrol, diesel prices today: Country gets a respite as rates remain unchanged on 1 April but ATF price hiked by 2% to all-time high

Petrol and diesel prices remained unchanged on Friday after it was hiked by 80 paise a litre each on Thursday, taking the total increase in rates in the last 11 days to Rs 6.40 per litre.

Petrol in Delhi costs Rs 101.81 per litre as against Rs 101.01 previously while diesel is priced at Rs 93.07 a litre, according to a price notification of state fuel retailers.

Rates have been increased across the country and vary from state to state depending upon the incidence of local taxation baring a couple of days.

This is the ninth increase in prices since the ending of a four-and-half-month long hiatus in rate revision on 22 March.

In all, petrol and diesel prices have gone up by Rs 6.40 per litre each.

On the first four occasions, prices were increased by 80 paise a litre – the steepest single-day rise since the daily price revision was introduced in June 2017. On the following days, petrol price went up by 50 paise and 30 paise a litre while diesel rose by 55 paise and 35 paise a litre. Petrol price was on Tuesday hiked by 80 paise a litre and diesel by 70 paise.

In all, petrol and diesel rices have gone up by Rs 5.60 per litre each.

Prices had been on a freeze since 4 November ahead of the Assembly elections in states like Uttar Pradesh and Punjab — a period during which the cost of raw material (crude oil) soared by about $30 per barrel.

The rate revision was expected soon after counting of votes on 10 March but it was put off by a couple of weeks.

The increase in retail price warranted by crude oil prices rising during the 137-day hiatus from around $82 per barrel to $120 is huge but state-owned fuel retailers Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) are passing on the required increase in stages.

Moody’s Investors Services last week stated that state retailers together lost around $2.25 billion (Rs 19,000 crore) in revenue for keeping petrol and diesel prices on hold during the election period.

Oil companies “will need to raise diesel prices by Rs 13.1-24.9 per litre and Rs 10.6-22.3 a litre on gasoline (petrol) at an underlying crude price of $100-120 per barrel,” according to Kotak Institutional Equities.

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.

India is 85 per cent dependent on imports for meeting its oil needs and so retail rates adjust accordingly to the global movement.

Jet fuel prices on Friday were hiked by 2 per cent – the seventh straight increase this year – to an all-time high, reflecting a surge in global energy prices.

Aviation turbine fuel (ATF) – the fuel that helps aeroplanes fly – was hiked by Rs 2,258.54 per kilolitre, or 2 per cent, to Rs 1,12,924.83 per kl in the national capital, according to a price notification by state-owned fuel retailers.

There was, however, no change in the price of petrol and diesel on Friday. Prior to the second pause in 11 days, auto fuel rates had gone up by Rs 6.40 per litre.

The increase in ATF price comes on back of the steepest ever hike 18.3 per cent (Rs 17,135.63 per kl) effected on 16 March.

Jet fuel prices are revised on the 1st and 16th of every month based on the average international price of benchmark fuel in the preceding fortnight.

Jet fuel, which makes up for almost 40 per cent of the running cost of an airline, has this year surged to new highs.

ATF prices have increased every fortnight since the start of 2022. In seven hikes beginning 1 January, ATF prices have been increased by Rs 38,902.92 kl or almost 50 per cent.

With inputs from agencies

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