Fuel prices continue to rise for sixth straight day as petrol prices increase by 57 paise/litre, diesel by 59 paise

The prices of fuel were hiked again on Friday. While petrol price was hiked by 57 paise per litre, diesel price saw an upward revision of 59 paise per litre.

This was the sixth straight daily increase in rates since oil PSUs ended an 82-day hiatus in rate revision. The cost of petrol has gone up by Rs 3.31 in these six days, while diesel by Rs 3.42.

Petrol price in Delhi was hiked to Rs 74.57 per litre from Rs 74, while diesel rates were increased to Rs 72.81 a litre from Rs 72.22, according to a price notification of state oil marketing companies.

Petrol and diesel prices were hiked by 60 paise per litre each on Thursday.

Rates have been increased across the country and vary from state to state depending on the incidence of local sales tax or VAT.

India’s fuel demand rose by nearly 50 per cent in May from the previous month as the country eased coronavirus-led restrictions, news agency Reuters reported on Wednesday quoting data from the Oil Ministry, signalling a slow revival of economic activity.

Fuel consumption, a proxy for oil demand in Asia’s third biggest economy, totalled 14.65 million tonnes in May, 47.4 per cent higher than in April but still 23.3 per cent lower than a year earlier, Reuters quoted data from the Petroleum Planning and Analysis Cell (PPAC) of the ministry.

Local sales of refined products in the world’s third biggest oil importer and consumer had fallen to their lowest since 2007 in April as the nation imposed a complete lockdown to prevent the spread of coronavirus.

Industry analysts expect it to take months for consumption to reach pre-lockdown levels as the monsoon season approaches, manufacturing activities remain low and transportation demand takes a hit in some parts of the country.

Consumption of diesel, which accounts for about two-fifths of India’s overall fuel usage and is widely used in transportation and irrigation, was down about 29.4 per cent year-on-year at 5.50 million tonnes.

Sales of petrol fell by 35.3 per cent from a year earlier to 1.77 million tonnes.

Petrol and diesel sales in May, however, increased by 81.8 per cent and 69.1 per cent respectively from April, the data shows.