Economic Undertakings

The price of gasoline increases further, the rate of diesel remains unchanged, Auto News, ET Auto

New Delhi: Global signals pushed oil prices to rise again across the country on Saturday, adding further pressure on strained consumer budgets struggling with rising food prices amid falling incomes.

However, unlike the previous uniform price move, oil marketing companies on Saturday raised the pump price of gasoline only and kept diesel prices unchanged, offering some relief to the transportation sector.

As a result, while the price of gasoline rose 30 paise per liter to INR 101.84 per liter in Delhi, the price of diesel remained at Friday’s level of INR 89.87 per liter.

Across the country, too, the price of gasoline rose in the range of 30 to 40 paise per liter, while diesel prices remained unchanged.

Prior to Saturday, oil marketing companies had kept fuel prices unchanged on Friday, but made increases for gasoline and diesel on Thursday. Pending an increase in the global oil supply, OPEC has agreed to gradually reduce production in line with growing demand.

In the city of Mumbai, where oil prices first crossed the Rs 100 mark on May 29, fuel prices hit a new high of INR 107.85 per liter on Saturday. The price of diesel in the city is also at 97.45 INR, the highest among the subways.

Gasoline prices on all subways have now crossed the 100 rupees per liter mark, and WTO officials have said if international oil prices continue to strengthen, rates could rise further.

With Saturday’s price hike, fuel prices increased 41 days and remained unchanged 37 days since May 1. The 41 increases raised gasoline prices by INR 11.44 per liter in Delhi. Likewise, diesel increased by INR 9.14 per liter in the nation’s capital.

Consumers can now expect any further increases in fuel prices to be kept under control only after MOCs start cutting the retail price of gasoline and diesel over the next few days to provide relief . With crude remaining low at $ 73 a barrel, lower fuel prices are a possibility.

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