With nine straight days of hike in petrol and diesel price, cost of auto fuel has scaled to its highest in over a year. In the national capital, petrol and diesel is priced at Rs. 76.26 and Rs. 74.62 per litre, respectively. And as per a report, consumers are unlikely to see any respite from price hike on both petrol and diesel as oil retailers plan to make up for the entire deficit of Rs. 8 per litre on sale of both the fuels by increasing price on a daily basis for at least 2 weeks.
But what one can make delight of is that the quantum of hike on a daily basis will be lowered from the current 60 paise per litre.
The prices were not being revised since March 16 on a daily basis in view of the coronavirus led demand disruption. And since the practice was again reinstated on June 7, prices have increased by Rs. 5 per litre on petrol and Rs. 5.23 per litre on diesel.
As per a sources from the state-run oil retailers, the petroleum products shall be revised higher in price daily until month end or earlier but the hike shall be by a lesser amount of between 30-40 paise per litre. "Global oil prices have again fallen below $40 a barrel and product prices have also decreased marginally. If this holds, there could actually be a reduction in petrol and diesel prices from next month," the official earlier said.
A report from ICICI Direct says that while the hike of up to Rs. 5 per litre is encouraging, a further hike of Rs. 5.5 per litre or additional 7-8% hike is required is net margin is to come back to Rs. 1.19 per litre on July 1, 2020.