Petrol prices above Rs 80 a litre mark, fuel rates up for nineteenth consecutive day

The rise in fuel prices continue. After diesel prices raced ahead of petrol on June 24, petrol prices have raced past the Rs 80 mark country-wide.

Diesel price in Delhi have also breached the psychological Rs 80 per litre mark for the first time, up 14 paise. Petrol prices in the national capital are also hovering close to the Rs 80 mark at Rs 79.92 a litre, up 16 paise.

In Mumbai however, petrol prices have raced well past the Rs 80 per litre mark Rs 86.70 while diesel costs Rs 78.34 a litre today. Likewise, in Chennai and in Kolkata, petrol prices have now raced well past the 80 rupees mark.

Diesel prices as of June 25 (per litre)

• Delhi: Rs 80.02
• Mumbai: Rs 78.34
• Chennai: Rs 77.29
• Kolkata: Rs 75.18

Petrol prices as of June 25

• Delhi: Rs 79.92
• Mumbai: Rs 86.70
• Chennai: Rs 83.18
• Kolkata: Rs 81.61

Today’s development is the nineteenth consecutive day of fuel price increase in India after the government did not increase the price for 83 days during the nation-wide lockdown to contain the spread of Covid-19.

Excise hike by Centre
It may be recollected that on May 6, the government had sharply increased excise duty on the fuels – Rs 10 per litre on petrol and Rs 13 per litre on diesel – aimed at generating an estimated Rs 1.6 lakh crore of additional revenue.

OMCs looking to improve marketing margins
A  Centrum Research study on Wednesday, June 24 revealed that the marketing margins for the automotive fuels have jumped by Rs 1.60 per litre for petrol and Rs 3.50 per litre for diesel in the past 15 days.

According to industry experts nearly 70 percent of the fuel prices are taxes and other charges such as transportation constitute a fixed cost.

It needs to be seen if the probability of stronger inventory gains, softer crude prices internationally and steady uptick in volumes will help the OMC in improving their financials given the hit they have taken during the lockdown spanning over two months.