Fuel prices surge, diesel at record high

On April 2, 2018, petrol retailed at Rs. 73.83 per litre, while diesel retailed at a record high of Rs. 68.89 a litre.

Petrol and diesel prices surged on Monday, April 2, as oil companies raised rates due to rising global crude prices.

Oil companies in India revise petrol and diesel prices every day at 6am as per the daily price revision process. In Delhi, petrol prices surged to a 4-year peak, while diesel retail prices were at record highs. Petrol was increased by 10 – 11 paise per litre in metro cities on April 2, while diesel was up by 11 – 12 paise.

Consequently, petrol retailed at Rs. 73.83 a litre in Delhi – highest since September, 2013 – and diesel reached an all-time high of Rs. 68.89. Diesel was also sold at record high prices in Kolkata, Mumbai and Chennai on April 2.

Global crude oil prices first fell sharply in mid-2014. However, the trend has reversed since past nine months or so, as prices have soared by 47 per cent since July 1, 2017. The year 2018 has seen crude oil prices go up by 5 per cent.

All state-owned oil companies – Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation – in June 2017 discontinued the 15-year old practice of revising fuel rates twice a month. Instead, a new policy was adopted to revise fuel prices on a daily basis in order to better reflect changes in cost.