Vijayawada: The price for petrol crossed Rs 100 per litre in four districts in Andhra Pradesh on 29 May. The petrol price in Chittoor district was Rs 100.11 per litre, in Guntur it was Rs 100.16, Nellore Rs 100.26, and in Vijayawada it was Rs 100.11. The petrol prices in Andhra Pradesh are revised on a daily basis at 6 am in the morning. The price differs at Indian Oil, Hindustan Petroleum and Bharat Petroleum bunkers.
"We were expecting that today it would cross Rs 100 in Vijayawada," said Vamshi Krishna, an HP Petrol pump owner. At an Indian Oil petrol pump in the city, the petrol price was recorded at Rs 99.69 per litre at 5 pm on 29 May. In Vijayawada, the petrol price went up by 12 paise from Rs 99.99 per litre to Rs 100.11 per litre. The diesel price was also around Rs 94 to Rs 95 per litre.
The country started using the dynamic fuel pricing technique on 16 June, 2017. Under this system of pricing, the fuel rates will be fixed in the domestic market in sync with the fluctuating fuel prices in the global market along with the dollar-rupee currency exchange rate.
The oil marketing companies decided to adopt this system to fix the fuel rates mainly to get the benefits out of the regular revision of fuel prices apart from ensuring transparency and encouraging an automation drive of petrol outlets in the country.
Surging international oil rates and exorbitant domestic tax structure are two key reasons for high rates of petrol and diesel in pumps. Benchmark Brent crude rose marginally by 0.24 per cent to $69.63 a barrel on Friday. Indian fuel retailers align pump prices of petrol and diesel with their international benchmark rates of the previous day. Even as the international oil prices saw both upward and downward movements this month, pump rates of fuels in India have only moved upwards.