Petrol turns dearer by 58 paise a litre, diesel cheaper by 31 paise

The fortnightly price change of fuels has seen the price of petrol go up by 58 paise a litre while diesel has become cheaper by 31 paise a litre from September 16. 

With this latest revision, the price of petrol in Mumbai stands at Rs 69.13, Rs 64.21 in Delhi, Rs 67.42 in Kolkata and Rs 63.76 in Chennai. Meanwhile, diesel now costs Rs 58.10 in Mumbai, Rs 52.59 in Delhi, Rs 54.89 in Kolkata and Rs 54.06 in Chennai.

According to Indian Oil Corporation, “The current level of international product prices of petrol and diesel and the rupee and US dollar exchange rate warrant increase in the selling price of petrol and decrease in selling prices of diesel, the impact of which is being passed on to the consumers with this price revision.”
India’s oil demand is projected to grow from 176 million tonnes in 2013 to about 458 million tonnes by the year 2040, which calls for a 3.7 percent compounded annual growth rate over the next 25 years. This would necessitate a corresponding increase in domestic refining capacity by way of major capacity expansion and new greenfield refineries.

To meet this demand, Indian Oil Corporation plans to add about 24 million tonnes per annum refining capacity through brownfield expansions over the next five to six years. These will be concurrent to the projects being undertaken for the production of BS VI-grade auto fuels by April 2020. Indian Oil has also announced plans for setting up an integrated refinery and petrochemical complex in Maharashtra. 

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