On the rise again! Petrol, diesel prices surge by up to 32 paise across all metro cities

Petrol and diesel surged by up to 32 paise across the metro cities amid weakening rupee and high international crude oil prices. Giving a temporary relief, the government last week announced Rs 2.5 cut on fuel, following which some states also cut VAT on fuel by Rs 2.5. But, oil marketing companies have not stopped increasing petrol and diesel prices ever since Finance Minister Arun Jaitley's announcement. Petrol is again over Rs 82 per litre in Delhi and has breached Rs 87 level in Mumbai as well.

Here are the fuel prices, as per the Indian Oil pricing formula, in four major cities of India.

1.     Delhi: Petrol Rs 82.26 per litre, up 23 paise; diesel Rs 74.11 per litre, up 29 paise
2.     Mumbai: Petrol Rs 87.73 per litre, up 23 paise; diesel Rs 77.68 per litre, up 31 paise
3.     Chennai: Petrol Rs 85.50 per litre, up 29 paise; diesel Rs 78.35 per litre, up 26 paise
4.     Kolkata: Petrol Rs 84.09 per litre, up 32 paise; diesel Rs 75.96 per litre, 29 paise

Delhi still has the lowest prices for petrol and diesel among all four metro cities despite the Kejriwal government not cutting VAT. Mumbai, on the other hand, continues to be the costliest.

Since mid-August, the petrol price had risen by as much as Rs 6.86 a litre and that of diesel by Rs 6.73, which is the highest in any six-week period since the system of daily price revision was introduced in mid-June last year. Petrol prices had hit an all-time high of Rs 84 per litre in Delhi and Rs 91.34 in Mumbai after which the government had to intervene. While the government would bear revenue loss of around Rs 10,000 crore, the loss for state-owned fuel retailers absorbing Re 1 per litre price would roughly translate into Rs 5,000 crore for the entire fiscal year.

The weakening rupee has also put more pressure on Indian oil companies importing crude oil. The rupee slumped by 30 paise on Monday to finish at a new lifetime low of 74.06 amid steady outflows of foreign capital from the country and the strengthening of American currency in international markets.

Reuters reported that Brent crude LCOc1 hit a session low of $82.66 but settled just 25 cents lower at $83.91 per barrel. Brent hit a four-year high of $86.74 last week. US crude CLc1 had fallen to a session low of $73.07 per barrel but climbed back up to settle at $74.29, just 5 cents lower.