No rise in petrol, diesel prices this time

Oil marketing companies (OMCs) are unlikely to announce a revision in petrol and diesel prices for the current fortnight. The revision, which could have led to an increase of 98 paise a litre in petrol and Rs 2.28 increase in diesel, was due on Wednesday but was put off in view of the upcoming Bihar elections from October 12, according to a PTI report.

“There will be no price revision this week. Our chairman has already said there is no hard and fast rule that the price revision should happen every fortnight,” said a senior executive of Indian Oil Corporation (IOC), India’s largest fuel retailer without sharing details of the decision.
 

The three OMCs — IOC, Bharat Petroleum Corp (BPCL) and Hindustan Petroleum Corp (HPCL) — adjust retail prices every fortnight after taking into account the average international oil prices and foreign exchange rate in the previous 15-day period.

The average cost of petrol in the global market has risen to $61.42 a barrel during the current month, compared with $60.15 a barrel last month. Also, the rupee has averaged 66.37 to a dollar in the first fortnight this month, against 65.70 to a dollar in the previous fortnight. As a result, the cost of petrol would have gone up by 98 paise per litre, including state taxes. The global price of diesel has also risen from $56.55 a barrel to $60.78 a barrel. That would have increased retail prices by Rs 2.28 per litre.

Prices were last revised on September 1 when petrol price was cut by Rs 2 per litre and diesel by 50 paise. A litre of petrol in Delhi currently costs Rs 61.20, while diesel is priced at Rs 44.95 per litre. Prices were last hiked in mid-May when petrol rates rose by Rs 3.13 a litre and diesel by Rs 2.71 per litre. Later, prices went up for consumers in Delhi on account of increased VAT rates.