In Delhi, petrol was being sold for Rs 68.73 a litre and diesel for Rs 57.05 a litre on Wednesday, according to the website of Indian Oil Corp.
NEW DELHI: State oil companies have raised prices of petrol and diesel by Rs 5.64 per litre and Rs 3.72 per litre respectively since July 1 through daily revisions that have largely gone unnoticed.
In Delhi, petrol was being sold for Rs 68.73 a litre and diesel for Rs 57.05 a litre on Wednesday, according to the website of Indian Oil Corp. On July 1, the prices of petrol and diesel were Rs 63.09 and Rs 53.33 a litre.
Prices in other states would vary due to local levies. Petrol, diesel as well as jet fuel, crude oil and natural gas are not in the ambit of the Goods and Services Tax (GST) and covers most goods and services, including petroleum products such as cooking gas and lubricants.
Prices of petrol, diesel, cooking gas and kerosene have historically been politically sensitive as these directly impact households’ budget and have the potential to induce inflation.
This is why prices of cooking gas and kerosene are still controlled.
Until June 15 this year, state oil companies used to fortnightly revise prices to align them with international rates and factor in currency fluctuation though price hikes were skipped or delayed in some fortnights to avoid political controversy, especially during polls.
From June 16, companies switched to daily revision. This meant the price changes would be so small that it would skip the attention of most consumers or opposition parties.
With a steep hike of 9 per cent and 7 per cent seen in petrol and diesel since July 1, it appears that the aims of daily revision are being neatly met.
ET View: Open Up Oil Marketing
Quicker revision to better align prices with rising costs (of imports) is all very well, but we do need to revamp market design in the huge retail oil sector.
India is now the world’s third largest oil importer, and we do need genuine competitive pressures to boost efficiency, raise productivity and bring down prices in oil retailing.
There’s no point in ring-fencing oil sales for only oil companies. What’s required is proactive policy for independent retailers of oil products. Abroad, in the mature markets, “independents” account for about half the retail off-take of petroleum products.