Petrol and diesel prices soared to new record highs across the country on Sunday after rates were hiked again by 25 paise and 30 paise a litre, respectively. The fourth consecutive daily increase in its rates has sent petrol prices above Rs.100 in most major cities of the country.
After the price revision, petrol in the state capital Kohima and Dimapur crossed the Rs.100-mark.
In Kohima, petrol was retailing at Rs.101.90 a litre while in Dimapur it was Rs.100.90 a litre. A litre of diesel in Kohima now cost Rs.93.70 while in Dimapur it was Rs.92.89. Price of petrol and diesel was the highest in Kiphire district– Rs.104.39 and Rs. 96.12 a litre respectively (See table).
The price of petrol in Delhi rose to its highest ever level of Rs.102.39 a litre and Rs.108.43 in Mumbai, according to a price notification of state-owned fuel retailers.
Diesel rates too touched a record high of Rs.90.77 in Delhi and Rs.98.48 a litre in Mumbai.
International oil benchmark, Brent crude had last week touched a three-year high after it had reached $80 per barrel, for the first time since October 2018.
PTI quoting top government officials insisted that oil companies haven’t passed on the entire increase warranted from international oil and gas rising to three-year highs and have ensured UK-like situation of pumps going dry isn’t seen anywhere in India.
Petroleum Secretary Tarun Kapoor said oil companies are taking their own decision on aligning retail rates with the cost but they are ensuring extreme volatility is avoided.
“We are watching the situation and trying to ensure the impact of global volatility is moderated to a large extent,” he said.
This sudden spike in international oil prices follows global output disruptions but the entire increase in retail rates necessitated by such an increase is not being effected, another official with direct knowledge of the matter told PTI.
“Just look at LPG rates. They have gone up from USD 665 to USD 797 in one month but oil companies haven’t passed on the increase warranted from that,” he said adding state-owned companies were absorbing a lot of volatility.
The increases, he said, have been “mild to moderate”.
“Some people are making a big deal out of the 62 per cent hike in natural gas prices. But if you look at the rates previously at USD 1.79 per million British thermal unit were abnormally low and way below cost. They have now gone up to USD 2.9. They still are less than the cost of production of USD 3.5 per mmBtu and are certainly lower than the USD 4.2 price that was prevalent in India a decade back,” the official said.