Despite Friday's increase, petrol rates in Delhi, Kolkata and Chennai are down 14-15 paise per litre so far this month, while diesel rates are lower by 1-2 paise per litre. However, in Mumbai, petrol price has risen by 26 paise per litre since November 30, while diesel price has gone up 38 paise per litre, according to the Indian Oil website - iocl.com.
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 2.19 per litre in Delhi; Rs 2.34 per litre in Kolkata, and Rs 1.68 per litre in Chennai. Diesel price has increased by Rs 2.44 per litre, Rs 2.76 per litre and Rs 2.26 per litre respectively, according to the IOC website. In Mumbai, petrol price has fallen by Rs 1.66 per litre while diesel price has come down Rs 0.24 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.
