Petrol, diesel price hiked by 60 paisa per litre for second straight day

Petrol and diesel prices were hiked by 60 paisa per litre on Monday (June 8), for the second day in a row, as state-owned oil firms reverted to daily price revisions after a 83-day hiatus.

Petrol price in Delhi was hiked to ₹72.46 per litre from ₹71.86 on Sunday, while diesel rates were increased to ₹70.59 a litre from ₹69.99, according to a price notification of state oil marketing companies.

This is the second daily increase in rates in a row. Oil companies had on Sunday raised prices by 60 paisa per litre on both petrol and diesel after ending a 83-day hiatus in daily rate revision. Daily price revision has restarted, an oil company official said.

While oil PSUs have regularly revised ATF and LPG prices, they had since March 16 kept petrol and diesel prices on hold, ostensibly on account of extreme volatility in the international oil markets. Auto fuel prices were frozen soon after the government raised excise duty on petrol and diesel by ₹3 per litre each to mop up gains arising from falling international rates.

The government on May 6 again raised excise duties by ₹10 per litre on petrol and ₹13 per litre on diesel. Oil companies, instead of passing on the excise hike to consumers, decided to adjust them against the reduction required because of the drop in international oil prices. They used the same tool and did not pass on the ₹1 per litre hike required for switching over to ultra-clean BS-VI grade fuel from April 1.