New Delhi/Mumbai, June 10 : Petrol and Diesel prices rose by 40 paise and 45 paise respectively on Wednesday, registering an increase for the fourth day in succession and bringing the price of Petrol to Rs 73.40 per litre and Diesel price to Rs 71.62 per litre in Delhi.
In Mumbai, the corresponding price is Rs 80.40 (Petrol) and Rs 70.35 (Diesel).
The fuel prices have risen by a little more than Rs 2 in the last four days thereby turning net fuel marketing margin positive for the oil companies.
In the last four days, the increase has been a total of Rs 2.14 for petrol and Rs 2.23 for diesel respectively.
“Net auto fuel marketing margins are now in the positive at Rs 0.2 litre from minus Rs 1.28 lire on June 6 due to retail price hike of Rs 1.74 per litre to Rs 1.78 per litre in the last three days,” said brokerage ICICI Securities in a note on Tuesday.
While Retail price increases are encouraging, a further price hike of Rs 5.5 litre (7 to 8 per cent) per litre would be required if the net margin has to recover to Rs 1.19 litre on July 1, 2020.” Crude oil prices have doubled to $40 per barrel in 2020 April end thereby jacking up the rates for petrol and diesel respectively.
After a hiatus of 81 days, the oil companies began increasing fuel prices since Sunday last. The Oil companies have to revise the domestic prices of prices of Petrol and Diesel every day to align them with international rates. Normally, they do not follow any specific pattern and consult the Government to raise, reduce or freeze the fuel prices.
Private fuel retailers, who control nearly one-tenth of the market, follow the state oil companies on pricing of fuel.
In the recent times though the international prices had fallen, the benefit was not passed on to the consumers and most of the gains from the price fall were appropriated by the Government which sought to raise duties on fuel. In two portions, the Centre raised a total of Rs 13 on Petrol and Rs 16 on Diesel.
Some State Government also raised duties on the fuel.
