Oil market companies switched to a daily revision system for petrol and diesel rates on June 16, 2017
Petrol prices were hiked by 3-10 paise per litre and diesel rates were increased by 6-12 paise per litre in the four major cities on Saturday. With this increase, effective 6 am on Saturday, December 16, petrol costs Rs 69.13 per litre in Delhi, Rs 71.89 per litre in Kolkata, Rs 76.88 per litre in Mumbai and Rs 71.64 per litre in Chennai, according to Indian Oil Corporation's website. Diesel costs Rs 58.44 per litre, Rs 61.1 per litre, Rs 61.55 per litre and Rs 61.55 per litre in the four metros, respectively.
Despite Saturday's increase, petrol rates in Delhi, Kolkata and Chennai are down 11-12 paise per litre so far this month. However, in Mumbai, petrol price has risen by 36 paise per litre since November 30, according to the Indian Oil website - iocl.com. Diesel rates are up 5-50 paise per litre in Delhi, Mumbai, Kolkata and Chennai.
(Petrol price was at Rs 69.13 per litre in Delhi on Saturday, according to the Indian Oil website)(Diesel rate was at Rs 58.44 per litre in Delhi on Saturday, according to the Indian Oil website)
Oil market companies - IOCL, Hindustan Petroleum Corporation (HPCL) and Bharat Petroleum Corporation (BPCL) - switched to a daily revision system for petrol and diesel prices on June 16 this year. Previously, the rates were changed every fortnight. The move to daily revision was in their bid to immediately pass on any movement in international oil prices to consumers and avoid sharp spikes by spreading them in small doses.
Since the shift to daily revisions, petrol price has risen by Rs 2.22 per litre in Delhi; Rs 2.37
per litre in Kolkata, and Rs 1.71 per litre in Chennai. Diesel price has increased by Rs 2.5 per litre, Rs 2.82 per litre and Rs 2.33 per litre respectively, according to the IOC website. In Mumbai, petrol price has fallen by Rs 1.56 per litre while diesel price has come down 12 paise per litre during this period.
Petrol and diesel don't come under the ambit of GST (Goods and Services Tax). Besides, global prices, excise duty and VAT determine the domestic price of petrol and diesel. India relies on imports to meet 80 per cent of its needs and so domestic fuel rates have been aligned to movement of equivalent product prices in the international market.