Petrol and diesel are going to pinch your pocket more now. Oil marketing companies have hiked petrol and diesel prices by Rs 1.06 and Rs 2.94 respectively.
The move comes a fortnight after oil marketing companies had cut petrol and diesel prices by 74 paise per litre and Rs 1.30/litre respectively.
On April 4, petrol price had been hiked by Rs 2.19 a litre and diesel by 98 paise per litre.
State-owned fuel retailers IOC, Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL) revise rates of the fuel on 1st and 16th of every month based on the average oil price and the foreign exchange rate in the preceding fortnight. “The movement of prices in the international oil market and the rupee-USD exchange rate shall continue to be monitored closely and developing trends of the market will be reflected in future price changes,” IOC has said in the past.
However, internationally the rebound in oil prices this year from 12-year lows is in danger of coming to a crashing halt, as the main engine of global demand growth for the past several years starts to sputter amid signs of a gasoline glut.
Crude oil has rallied more two-thirds from its mid-January nadir on robust demand from refineries worldwide, stoking cautious optimism among producers and exporters that the epic rout that slashed global prices by 75 percent between mid-2014 and early 2016 is finally over.
But rampant production of oil products, especially in Asia, is threatening to derail that recovery. Several major gasoline importing countries have started to export, as excess supplies of fuels overflow storage facilities and erode refinery profits.
However consumers in India are still to get all the benefits from the sharp drop in international oil prices to a decade low as the government on five occasions since November has raised excise duty on the two auto fuels.
The five levy hikes add up to Rs 4.02 per litre on petrol and Rs 6.97 on diesel, handing the government a neat Rs 17,000 crore as additional revenue.
In 2014 diesel prices were deregulated, giving oil marketing companies the liberty to hike or cut prices according to global price movement.