In 2018, OMCs increased the price of Petrol 140 times & Diesel 142 times
Sai Krishna Muthyanolla
October 1, 2018
Data compiled from the website of IOCL reveals that the price of petrol increased 140 times in 2018 while it decreased or remained the same 132 times. In the case of diesel, the price increased 142 times.
The continuous increase in the prices of petrol & diesel has affected every section of the population. One of the reasons for the increase in prices is the reluctance of both the central & state governments to reduce taxes. Factly had earlier written about the taxation structure on petrol & diesel as well as the increase in tax revenue of governments.
Data compiled from the website of Indian Oil Corporation (IOCL), one of three Oil Marketing Companies (OMCs), reveals that the price of petrol increased 140 times in 2018 while it increased 142 times in the case of diesel.
Deregulation of Fuel Prices
Until 2010, the government used to regulate the price of petrol & diesel. Government used to compensate the OMCs for any shortfall because of the subsidised price. In June 2010, the then UPA government decided to deregulate the price of petrol, making the price market determined based on the crude oil price of Indian basket and other factors. The price of diesel was completely deregulated in October 2014, after the NDA came to power. The OMCs used to revise the prices every fortnight (on the 1st & 16th of every month) till June 2017. From June 16th 2017, the OMCs are revising the price of petrol & diesel on a daily basis.
Price of Petrol increased by more than 16% in 2018
Daily price data of petrol is compiled from the website of IOCL, the largest of all the OMCs, for the four metro cities. Analysis of this data shows that the price of petrol increased by at least Rs 12 in each of the four metros between January & September 2018. The greatest increase was observed in Chennai where it increased by Rs 14.27 during this nine-month period.In terms of percentage, the price in Chennai increased by 19.67% during this nine-month period, the highest for any metro. An increase of at least 16% was observed in the price of petrol in each of the four metros. During the same period, the price of crude oil (Indian Basket) increased by about 20%.
Price of Diesel increased by more than 22% in 2018
Daily price data of diesel is compiled from the website of IOCL, the largest of all the OMCs, for the four metro cities. Analysis of this data shows that the price of diesel increased by at least Rs 14 in each of the four metros between January & September 2018. The greatest increase was observed in Chennai where it increased by Rs 16.18 during this nine-month period.
In terms of percentage, the price in Chennai increased by 25.72% during this nine-month period, the highest for any metro. An increase of at least 22% was observed in the price of diesel in each of the four metros. During the same period, the price of crude oil (Indian Basket) increased by about 20%.
OMCs increased the price of Petrol & Diesel at least 140 times this year
Between January & September 2018, data suggests that the price of petrol increased 140 times in 2018 in Delhi, Mumbai & Chennai where as it increased 141 times in Kolkata. On the other hand, in 2018, the price decreased or remained the same 132 times in Delhi, Mumbai & Chennai. In the case of Diesel, the price increased 143 times in Kolkata and 142 times in other metros.
Featured Image: Petrol and Diesel price increase