New Delhi: Public sector oil companies on Saturday raised petrol and diesel prices by nearly 90 paise per litre, the third hike since May 15, as they tried to partially offset widening losses by selling fuel below market rates amid a sharp rise in global crude prices due to supply concerns.But this still leads to an under-recovery of Rs 13 per liter of petrol and Rs 38 per liter (pre-tax) of diesel sold by them as global prices remain above the $100 per barrel mark.With this, the cumulative increase has come to just under Rs 5 per litre, which is lower than the increases seen in many other parts of the world since the post-war surge in oil prices in West Asia. Now the price of petrol in Delhi is Rs 99.51 per liter, while the price of diesel is Rs 92.49 per liter.With global gas prices also on the rise, Indraprastha Gas has also announced a fresh hike in CNG price by Re 1, taking it to Rs 81.09 per kg in the capital, the second hike this week. Prices have also increased in neighboring cities Noida, Ghaziabad and Gurgaon.
However, prices of domestic LPG cylinders and piped cooking gas remain unchanged.After the first hike, the government said the cumulative under-recovery on petrol, diesel and LPG has come down by 25% from Rs 1,000 crore to Rs 750 crore.The price of one liter petrol in Mumbai is now Rs 108.49, while the price of diesel is Rs 95.02. Petrol in Chennai is priced at Rs 105.31 per liter and diesel at Rs 96.98 per litre, while petrol in Kolkata is priced at Rs 110.64 per liter and diesel at Rs 97.02 per litre. Retail petrol and diesel prices are linked to global crude oil prices, which have risen more than 50% since the war began on February 28, disrupting flows through the Strait of Hormuz. The variation in auto fuel prices across different states is due to differences in value added tax (VAT) structures.After keeping petrol and diesel prices unchanged for 75 days despite a rise in crude oil, oil companies raised prices for the first time on May 15 by nearly Rs 3 per litre, followed by a hike of 90 paise on May 19. Government officials said the Center had initially imposed a significant blow to revenues to protect consumers while fuel prices rose between 10% and 90% around the world. It said petrol prices in most major developed economies are now above Rs 150 per litre, with retail sales exceeding Rs 180 in many countries.Most major importing economies have passed the burden on to consumers, with pump prices doubling in many countries over the past 48 months, an official said.
