Petrol price moves up further, diesel rate unchanged

Global cues pushed petrol prices to increase again across the country on Saturday adding further pressure to the stretched budgets of consumers grappling with rising food prices amidst shrinking income.

However, unlike uniform price movement earlier, oil marketing companies on Saturday increased the pump price of petrol only and kept diesel rates unchanged offering some relief to the transport sector.

Accordingly, while the price of petrol increased by 30 paise per litre to Rs 101.84 a litre in Delhi, diesel price remained at Friday's level of Rs 89.87 a litre.

Across the country as well, Petrol price increased in the range of 30-40 paise per litre, while diesel prices remained unchanged.

Before Saturday, oil marketing companies had kept fuel prices unchanged on Friday but had effected increases for both petrol and diesel on Thursday. With expectation of increased global supply of oil as OPEC agreed to taper production cut in line with growing demand.

In the city of Mumbai, where petrol prices crossed Rs 100 mark for the first time ever on May 29, the fuel price reached new high of Rs 107.85 per litre on Saturday. Diesel prices in the city is also at Rs 97.45, the highest among metros.

Petrol prices in all metros have now crossed Rs 100 per litre mark and OMC officials said that if international oil prices continue to firm up, rates may rise further.

With Saturday's price hike, fuel prices have now increased on 41 days and remained unchanged on 37 days since May 1. The 41 increases have taken up petrol prices by Rs 11.44 per litre in Delhi. Similarly, diesel has increased by Rs 9.14 per litre in the national capital.

Consumers can now expect that any further rise in fuel prices is checked only after OMCs start cutting the retail price of petrol and diesel over next few days to provide relief. With crude staying low at $73 a barrel, lower fuel prices is a possibility.