As the Indian economy reopens with the Unlock 1.0, government-owned oil marketing companies have restarted the daily revision on fuel prices. Generally, these companies, that include Indian Oil, Hindustan Petroleum and Bharat Petroleum revise retail prices of petrol and diesel once a day but this system was paused since 16 March, apart for when state governments increased VAT in the last two months.
On Monday, petrol prices were raised by 60 paise per litre to Rs 72.46 in New Delhi, Rs 74.46 in Kolkata, Rs 79.49 in Mumbai, Rs 75.22 in Hyderabad, Rs 74.79 in Bengaluru and Rs 76.60 in Chennai. Diesel prices per litre were increased to Rs 70.59 in New Delhi, Rs 66.71 in Kolkata, Rs 69.37 in Mumbai, Rs 69 in Hyderabad, Rs 67.11 in Bengaluru and Rs 69.25 in Chennai.
It is the second consecutive day of increase in fuel prices and have risen by Rs 1.20 per litre in two days.
Despite the sharp correction in international oil prices in April and central government's hike in excise duties of Rs 10 per litre on petrol and Rs 13 per litre on diesel on 6 May, the discount or rise was not passed on to consumers.
Now that Brent crude, the international benchmark for oil prices has doubled from its April rates, in addition to an increase in selling prices by Saudi Arabia and hike in VAT by state governments seeking additional sources of revenue, fuel prices may continue to rise in the coming days.