NEW DELHI: Public sector oil companies increased petrol and diesel prices by about 90 paise per liter on Saturday, the third hike since May 15, as they sought to partially offset rising losses from selling fuel below market prices amid a sharp rise in global crude oil prices on supply concerns.But this still leaves them with a recovery shortfall of $13 per liter of gasoline they sell and $38 per liter of diesel (both before tax) as global prices remain above $100 per barrel.The cumulative increase thus came to just under 5 litres, which is still lower than the increases seen in many other parts of the world since the war in West Asia sent oil prices soaring. While the price of petrol is now 99.51 per liter in Delhi, the price of diesel is 92.49.With global gas prices also rising, Indraprastha Gas also announced a fresh increase in the price of CNG, to 81.09 per kg in the capital, the second increase this week. Prices also rose in the neighboring cities of Noida, Ghaziabad and Gurgaon.
However, prices of domestic LPG cylinders and piped cooking gas remained unchanged.After the first increase, the government said the cumulative shortfall in recovery for petrol, diesel and LPG has come down by 25% from Rs 1,000 crore to Rs 750 crore.
The price of a liter of petrol in Mumbai is now $108.49, while diesel is $95.02. In Chennai, petrol costs 105.31 per liter and diesel 96.98, while in Kolkata, petrol costs 110.64 per liter and diesel 97.02. Retail prices of gasoline and diesel are linked to global crude prices, which have risen by more than 50% since the war began on February 28, disrupting flows through the Strait of Hormuz. The variation in motor fuel prices across states is due to differences in value-added tax (VAT) structures.After keeping petrol and diesel prices unchanged for 75 days despite the rise in crude oil prices, oil companies first raised prices on May 15 with a rise of around 3 pounds per litre, followed by another increase of 90 paise on May 19. Government officials said the center initially took a big hit on revenues to protect consumers, even as fuel prices around the world rose between 10% and 90%. He added that gasoline prices in most major developed economies now exceed 150 per litre, with many countries retailing it for more than 180.Most major importing economies have shifted the burden to consumers, with fuel prices doubling in many countries over the past 48 months, one official said.