Petrol and diesel prices in the country rose again sharply by 19 paise and 21 paise per litre respectively on Wednesday as Oil Marketing Companies (OMCs) continued to cover for their losses on holding back price rise for the past 18 days due to state elections. This is the second increase in fuel prices in as many days as petrol and diesel prices rose by 15 paise and 18 paise per litre respectively even on Tuesday after an 18 days break. With Wednesday’s increase, petrol is now being retailed at Rs 90.74 a litre and diesel Rs 81.12 a litre in the national Capital.

IANS had written earlier that OMCs may begin increasing the retail price of petrol and diesel post-state elections as they were incurring losses to the tune of Rs 2-3 per litre by holding the price line despite higher global crude and product prices. The oil companies had already increased the ATF prices by 6.7 per cent effective this month. OMCs benchmark retail fuel prices to a 15-day rolling average of global refined products’ prices and dollar exchange rate. In the last fortnight, global oil prices have hovered in $66-67 a barrel range higher than the levels when petrol and diesel prices were last revised. Crude oil prices have jumped over $69 a barrel on Wednesday.

The price of the two auto fuels had fallen by 16 paise and 14 paise per litre respectively on April 15 after a 15-day break when OMCs kept its prices static. Thereafter revision of fuel prices has been halted. The OMCs went on price cut for the first time this year on two consecutive days – March 24 and 25 after keeping oil prices steady for the past 24 days.