Rising global crude oil prices have prompted Essar Oil to increase petrol and diesel prices at its retail outlets by 25 paise to Re 1 a litre with effect from Saturday.
Just last month, the company had reduced petrol and diesel prices by Rs 0.50 to Rs 2.50 a litre, bringing these at par with rates of public sector firms.
Reliance Industries, the other private sector firm which retails petrol and diesel, said it would not be increasing the price for now.
Essar is increasing fuel prices in all states, except Gujarat, where the company sources fuel from its refinery, and in Karnataka, where the cost of positioning is less.
Essar Oil links its fuel prices to international oil prices. With economic data from across the globe indicating revival and hopes of increase in oil demand, crude oil prices have been climbing. The Indian crude basket has averaged $72.52 a barrel so far this month, against $64.83 per barrel in July. It averaged $69.12 per barrel in June.
Last month, the state-run oil marketing companies—- Indian Oil, Bharat Petroleum and Hindustan Petroleum — were allowed by the government to raise petrol and diesel rates by around 10 per cent or Rs 4 a litre and Rs 2 a litre, respectively, to partly align these with rising crude oil prices. The state OMCs are now selling petrol at Rs 48.76 a litre and diesel at Rs 36.70 a litre in Mumbai and at Rs 32.87 a litre for diesel, and Rs 44.63 per litre for petrol and Rs 32.87 a litre for diesel in Delhi.
Source: Business Standard