Monday, December 5, 2022

Fuel prices hiked by 80 paise a litre

After a one-day hiatus, the state-owned oil marketing companies on Friday hiked the petrol and diesel prices by 80 paise a litre each across the country.
According to IOCL, price of petrol in Dimapur soared to Rs.99.44 a litre and diesel price rose to Rs.86.10 following the rate revision. In the Kohima, petrol price breached Rs.100-mark taking the price to Rs.100.57 per litre while diesel was retailing at Rs.87.01 per litre.
According to PTI, the increases are the steepest single-day rise since the daily price revision was started in June 2017.
With three increases beginning March 22, petrol and diesel prices have gone up by Rs 2.40 a litre.
A record 137-day hiatus in rate revision ended on March 22 with an 80 paise per litre increase in rates and similar proportion hikes have followed in subsequent days.
Prices had been on a freeze since November 4 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 USD 30 per barrel.
The rate revision was expected soon after assembly elections ended on March 10 but it was put off.
Oil companies are now recouping the losses.
Moody’s Investors Services says fuel retailers IOC, BPCL and HPCL together lost around USD 2.25 billion (Rs 19,000 crore) in revenue for keeping petrol and diesel prices on hold during elections in five states.
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 USD 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 USD 100 per barrel crude oil and Rs 15-20 a litre hike if the average crude oil price rises to USD 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.

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