Following their newly discovered penchant for revising fuel prices per alternate day, oil and marketing companies (OMCs) increased petrol and diesel pump prices again on Tuesday.
As a result, petrol prices increased by 27 paise per litre to Rs 92.85 per litre in Delhi on Tuesday, whereas diesel prices increased slightly by 29 paise to Rs 83.51 per litre.
Petrol and diesel prices rose between 25 and 30 paise per litre throughout the nation on Tuesday, but their real retail prices differed according to the number of state levies.
Over the last few days, the OMCs have been adjusting gas and diesel prices per alternate day rather than monthly. As a result, Tuesday’s price increase occurred after a lack of movement on Monday.
Additionally, although petrol and diesel prices increased by 24 and 27 paise per litre on Sunday, no change was made on Saturday. Similarly, although gasoline prices increased on Friday, they stayed unchanged the day before.
“By not hiking gas prices on a daily basis, it seems as if oil companies are offering some relief to consumers. However, rates are not dropping but are increasing on any alternate day this month “According to an unnamed oil sector analyst.
He mentioned that regular price revisions began after the deregulation of petrol and diesel rates a few years ago but have been discontinued by OMCs for many months, indicating that the administrative price regime is still effective for the industry.
Regular market revisions were conducted by OMCs each morning, with retail fuel prices being benchmarked against a 15-day rolling average of global refined oil prices and the dollar exchange rate. However, in a sector where gasoline costs must be gradually raised, alternate day price revision seems to be the flavour of the month.
It’s worth mentioning that, after ten price increases in May, the retail price of standard petrol in Mumbai has now surpassed Rs 99 per litre. Petrol rates in many cities in Madhya Pradesh, Rajasthan, and Maharashtra have already surpassed Rs 100 per litre. For some time now, premium gasoline has been lingering above that amount.
Petrol prices in Delhi rose by Rs 2.30 per litre in May, the tenth rise in a row. Similarly, fuel prices in the capital have increased by Rs 2.78 per litre this month.
IANS previously reported that OMCs may begin raising the retail price of petrol and diesel following state elections, as they were incurring losses of Rs 2-3 per litre by maintaining the price line in the face of rising global oil and commodity prices.
With global oil prices hovering about $69 a barrel, OMCs may be forced to increase fuel prices again if prices continue to firm.