The base price of petrol and diesel has not seen a change since March 16 and the higher retailing price in some of the states is primarily on account of tax-hike of some nature at state levels. This is even as the oil-retailing companies were asked to absorb the excise duty hike announced by the central government on both petrol and diesel.
But as per reports, as the lockdown 3.0 nears its end on May 17, 2020 and there will be more relaxations allowed, oil marketers may begin to revise prices daily as was practiced earlier. And this shall yet again bring about a hike in fuel cost as globally too crude oil has jumped more than 50% over last month's price to levels of $30 per barrel currently. Notably since January crude prices have corrected by almost 50-60%.
Amid slumping demand due to lockdown and ailing oil prices globally, oil marketers halted the daily revision exercise for fuel rates.
However, until and unless, the marketers are able to make up for the lost sales during the extended lockdown which saw a steep fall in demand of over 50%, the prices shall not be increased beyond a certain level.
In the national capital, the price of petrol and diesel has surged starting from May 5 when the state government levied higher VAT in order to raise its revenue mop up to fight Covid 19. Petrol and diesel in Delhi is retailing at Rs. 71.26 and Rs. 69.39 per litre in Delhi.