Fuel prices in the country have been hovering at record levels on account of 41 increases in its retail rates since April this year
The OMCs had preferred to maintain wait and watch policy on global oil situation before making any revision in prices. This is the reason why petrol prices were not revised for the last three weeks. But extreme volatility in global oil price movement has now pushed OMCs to effect the increase.
The wait and watch plan of OMCs had come to the relief of consumers earlier as no revision came during a period when crude prices were on the rise over shortfall in US production and inventories and a pick up in demand.
This would have necessitated an increase of Rs 1 in price of petrol and diesel.
As a result In Mumbai, the petrol price increased by 21 paise per litre to Rs 107.73 per litre while diesel rates increased to about Rs 97.50 a litre.
Across the country as well petrol and diesel prices increased between 20-30 paisa per litre but their retail rates varied depending on the level of local taxes in the state.