Petrol rates on upswing, Sironcha among costliest in region

Nagpur: Fuel rates that had remained stable for the entirety of December are on an upswing since January 5. This has increased the prices of fuel by nearly Rs1.5 a litre as compared to last month.
Petrol price was at Rs92.31 in the city and diesel price touched Rs82.69 on Tuesday. This is an increase of Rs1.46 and Rs1.63 for petrol and diesel, respectively, since December.The prices are in the range of Rs90-odd and over Rs80 a litre for petrol and diesel, respectively, at outlets in the outskirts of the city, like Kamptee, Hingna and Butibori.
However, fuel may not be the costliest at Nagpur, as has been the general perception. TOI did a quick survey of the retail rates using the official mobile app of an oil marketing company. It was seen that Sironcha, a remote taluka in Gadchiroli, had the highest fuel rates. Petrol costed Rs93.70 a litre and diesel Rs82.80 in Sironcha on Tuesday.
This is followed by Yavatmal, where petrol costs Rs93.14 and diesel Rs82.21. Even though the petrol price was higher there than Nagpur city, diesel was cheaper by nearly 40 paise. This was seen in a number of other centres too.
Sources in oil marketing companies said rates were derived after a complex calculation that includes cost of transportation and local taxes. The disparity in diesel rates is expected to be due to taxation. Comparing the rates of rural areas near Nagpur would give a better picture, they added.
It was seen that rates of both the fuels at outlets in Kanhan, Hingna or Butibori were lower than other centres of Vidarbha.
Company officials said the prices vary from location to location, even in a single city.
The gradual increase in rates during the last one year has made little impact on retail sales. In fact, sales have also recovered from the Covid-19 impact.
Vilas Salpekar of the Vidarbha petroleum dealers association said low margins continue to be the concern for outlet owners. Expenses have increased but the companies have not hiked the dealers’ margin.
Kukku Marwah of transporters association ‘Nagpur Truckers’ Unity’ said the hike came at a time when the industry is going through a tough phase. Freights are down due to impact of Covid-19 on the economy.
Rates of petroleum products like polymers — the basic raw material for plastic industry — have also gone up, said Suresh Rathi of Vidarbha industries association (VIA).