Petrol costlier, diesel rate cut 1st time in 3 months

Global cues pushed fuel prices to increase again across the country on Monday adding more misery to the common man already grappling with rising food prices amid shrinking income.

However, unlike uniform price movement earlier, oil marketing companies on Monday continued with their practice adopted more than two months ago to increase the price of petrol but reduced the primp price of diesel for the first time in close to three months.

Accordingly, while the price of petrol increased by 28 paise to Rs 101.19 a litre in Delhi, it reduced by 16 paise per litre to Rs 89.72 a litre in Delhi.

Across the country as well, petrol prices increased in the range of 25-35 paise per litre, diesel prices reduced by 15-20 paise per litre.

Before Monday, the retail prices of petrol and diesel rose by a sharp 35 paise and 26 paise per litre on Saturday while it remained unchanged on Sunday.

In the city of Mumbai, where petrol prices crossed Rs 100-mark for the first time ever on May 29, the fuel price reached a new high of Rs 107.20 per litre on Monday. Diesel price in the city is also at Rs 97.29, the highest among metros.

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

With Monday's price hike, fuel prices have now increased on 39 days and remained unchanged on 34 days since May 1. The 39 increases has taken up petrol prices by Rs 10.79 per litre in Delhi. Similarly, diesel has increased by Rs 9.15 per litre in the national capital till Sunday.

Consumers can now only expect that any further raise in fuel price is checked as OMCs start cutting the retail price of petrol and diesel over the next few days to provide relief. But with crude once again crossing the $75 a barrel mark in wake of the falling US inventories and rising demand, the next action of OMCs would be awaited.