Petrol price has risen by over R 5 per litre, but you may be forgiven for not noticing

New Delhi, Aug 24: Petrol price has been on a rise, and how. But unlike earlier, this time there has been no fuss around the increase in the price of a traditionally politically sensitive item, on which even a minuscule hike would lead to strikes and street protests in the good old times. Many of you might be surprised to know that this time petrol price has risen by a whopping R 5.27 per litre in less than two months, and that too barely to anyone’s notice.
The reason: Dynamic fuel pricing — a mechanism introduced on June 16 for revising retail fuel prices daily across the nation in conjunction with the change in the crude oil prices. Narendra Modi administration’s novel scheme — OK, not so novel after all, since it has been in practice in several other parts of the world — ensured that the customers, and more importantly, the oil marketing companies, do not feel the pinch of keeping fuel prices static for up to 15 day even if the crude oil starts rising rapidly, as was the earlier practice.
Immediate price cuts followed. Petrol prices fell by s 3.45 per litre in just a span of 13 days, with the oil companies cutting prices or keeping it unchanged for 12 days in a row. Then, it started rising, beginning with a humble 1 paisa per litre hike on June 28-29 — an amount not worth batting an eyelid.
Petrol price has been on the upmove since then, with the oil companies continuously raising it in small doses everyday, barring a few even smaller cuts in between. Since June 28, petrol price in Delhi has risen by s 5.42 per litre to s 68.88 per litre today (Thursday, 24 August, 2017). (Agencies)