Fuel prices rise for the first time since February

After February 27, the fuel prices in the city have hiked for the first time on May 4, 2021

After February 27, the fuel prices in the city have hiked for the first time on May 4, 2021.

HT Image

The price of petrol increased by ₹0.17, the diesel price increased by ₹0.21, and the rate of premium petrol increased by ₹0.17, however, the price of CNG has remained stable.

After the hike, the prices of petrol on Tuesday were ₹96.62 for unleaded petrol, ₹100.30 for premium petrol and ₹86.32 for diesel. This is the first hike in fuel prices in the last two months. The last price hike was recorded on Feb 27. In the months of March and April, fuel prices had marginally declined but on Tuesday prices went up again.

“The fuel prices have increased almost after two months. The main reason behind this is the dollar and rupee proportion. The dollar has gone up and the prices of crude oil have also increased. It has gone up to 65 dollars per barrel,” said Ali Daruwala, spokesperson, All India petrol dealers’ association.

On Feb 27th, the price of petrol was ₹97.19 which was hiked by ₹0.23 and the price of diesel was ₹86.88 per litre which was hiked by ₹0.16 vut after being stable for almost a month, the fuel prices recorded a marginal decline on March 24th. The price of petrol was ₹97.02, and the price of diesel was ₹86.70 on March 24th. After this, until May 4th fuel prices saw a downward trend.

While analysing the recent hike in fuel prices Vivek Velankar, president of Sajag Nagrik Manch and an RTI activist said that various factors have to be taken into account before drawing a definitive conclusion for this price hike.

“We have to take one factor into account that unlike last year, there is no complete lockdown in India and also in the world. So, the traffic hasn’t been completely stopped. Industries are functioning, so material transportation has been going on. Passenger transport is not there, so demand must have been reduced but in case of fuels, the prices are not related to the demand. Taxes have not been reduced. They are on par with last year. The rate of dollar has a direct impact. So, to draw a definitive conclusion the variations in these factors have to be checked,” said Velankar.

As Covid cases started to surge in February, gradually restrictions were imposed in Pune district.

The curbs have been intensified in March and April. It has impacted the sale of the fuel.

“Now the sale has come down to 20 per cent as compared to the pre Covid days in Pune district. We had reached 80 per cent sale of the pre Covid days in January and February. In the first week of March, the sale rate was lingering around 70 per cent to 75 per cent Afterwards it came down totally to 10 per cent to 20 per cent. This sale is going on because some industries are functioning. Because of that at least this much sale is going on but as passenger transport and local traffic is halted the sales have reached rock bottom,” said Daruwala.

Velankar emphasised on tracking the fuel prices for next few days.

“In the last two months, fuel prices marginally reduced. It may or may not be related to the recent assembly polls in five states. We will have to keep a close track on the trend of fuel prices in the next few days,” he said.

In order to avoid fluctuations in fuel prices it has been long standing demand of activists to bring fuel under the ambit of GST.