Fuel prices hiked: Petrol up by Rs 1.67 per litre, diesel by Rs 7.10 in Delhi; prices remain unchanged in Mumbai
According to the official website of Indian Oil Corporation, on Tuesday, petrol costs Rs 76.31 per litre in Mumbai and diesel costs Rs 66.21 a litre.
After over a month of coronavirus -induced lockdown, fuel prices were hiked in the capital.
Petrol prices were up by Rs 1.67 a litre while diesel prices were Rs 7.10 in Delhi on Tuesday. This follows Delhi government's decision to raise VAT on petrol to 30 percent from 27 percent, previously. In case of diesel, VAT has been almost doubled to 30 percent from 16.75 percent.
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In Delhi, petrol prices rose to Rs 71.26 a litre as against Rs 69.59 per litre on Monday. Diesel climbed to Rs 69.39 a litre as against Rs 62.29 on Monday.
Fuel prices remain unchanged in Mumbai though.
According to the official website of Indian Oil Corporation, on Tuesday, petrol costs Rs 76.31 per litre in Mumbai and diesel costs Rs 66.21 a litre. In Kolkata, a litre of petrol will cost Rs 73.30 per litre.
On 22 April, the Assam government increased fuel prices steeply to cover "some of the losses" incurred due to the nationwide lockdown imposed to contain the spread of novel coronavirus , Finance and Health minister Himanta Biswa Sarma said to PTI.
The price of petrol increased from Rs 71.61 to Rs 77.46 per litre and of diesel from Rs 65.07 to Rs 70.50 per litre.
Sarma told a press conference that the increase in fuel prices is a temporary measure and "the pain has to be borne by all.
"Once the coronavirus ends, we will review it again."
The state government was losing revenue as fuel purchase by consumers had come down drastically and "we had to increase the prices to cover some of the losses", Sarma said.
"We will be doubly hit as international prices have come down and our royalty from OIL India and ONGC will also come down drastically. Besides, fuel sale in the state has almost been negligible.
"Earlier our monthly dues as royalty was Rs 166 crore but now we will get around Rs 50 crore and so we are trying to protect our revenue by hiking the prices," he said.
Assam government had issued a notification on Tuesday increasing the rates of tax on diesel by "23.66 paise in the rupee or Rs 17.45 per litre whichever is higher" and in the case of petrol and motor spirits by "32.66 paise in the rupee or Rs 22.63 per litre, whichever is higher".
Crude prices rise on demand prospects as lockdowns start to ease
Oil prices climbed in early trade on Tuesday, adding to gains in the previous session, on expectations that fuel demand will begin to pick up as some US states and nations in Europe and Asia start to ease coronavirus lockdown measures.
West Texas Intermediate (WTI) crude futures rose as much as 8.2 percent to a three-week high of $22.06 and were up 7.6 percent, or $1.55, at $21.94. The US benchmark is on a five-day win streak that started on 29 April.
Brent crude futures hit a high of $28.37 a barrel in early trade and were up 4.1 percent, or $1.12 cents, at $28.32. Brent is up for a sixth straight day.
Both benchmark contracts rose about 3 percent on Monday.
Prospects improved for fuel demand as some US states and several countries, including Italy, Spain, Portugal, India and Thailand, began allowing some people to go back to work and opened up construction sites, parks and libraries.
“Considering ... the depths of demand destruction, markets are probably inclined to take any good news relatively quickly,” said Daniel Hynes, senior commodity strategist at Australia and New Zealand Banking Group.
Global oil demand probably collapsed by as much as 30 percent in April, analysts have said, and the recovery is likely to be slow, especially with airlines expected to remain largely grounded for months to come.
Australian national carrier Qantas Airways’ chief executive Alan Joyce said on Tuesday that “international travel demand could take years to return to what it was.”
With Saudi Arabia, Russia other major producers and companies slashing output, the market shrugged off a decision by the Texas energy regulator to cancel a vote on mandating a 20 percent output cut in the United States’ biggest oil-producing state.
The Texas Railroad Commission had been due to hold the vote on Tuesday, but Commissioner Ryan Sitton was unable to win support from his fellow commissioners for the plan. The proposal was strongly opposed by oil trade groups and major shale producers.
“The intent in itself was positive - but it was always going to be a long shot,” Hynes said.
--With inputs from agencies
In three days, petrol prices increased by 59 paise per litre and diesel by 69 paise, neutralising rate cuts between 24 March and 15 April
The price of one litre of petrol increased in Kolkata by 27 paise
In Chennai, petrol prices increased from Rs 92.55 on 4 May to Rs 92.70 on 5 May after a rise of 15 paise in its price