Petrol price rose 28 paise per litre and diesel by 29 paise on Sunday as fuel rates surged for the fifth straight day, primarily due to firming of international oil prices. Petrol price in Delhi rose to Rs 83.41 per litre from its previous price of Rs 83.13 per litre. Diesel rates went up from Rs 73.32 to Rs 73.61 per litre in the national capital, the latest data by oil marketing companies suggest.
Notably, petrol in Delhi is just 60 paise short of breaching the all-time high price of Rs 84 per litre, which was recorded in October 2018. Industry analysts say if the current trend of rising crude oil prices continue, Delhi could breach the all-time high mark next week.
In Mumbai, fuel crossed Rs 90-mark for petrol and Rs 80 for diesel. Petrol prices surged 25 paise and 27 paise in Chennai and Kolkata to Rs 86.25 per litre, and Rs 84.90, respectively. Diesel prices surged 28 paise and 29 paise in these two cities to Rs 78.97 per litre and Rs 77.18 per litre, respectively, on Sunday.
The oil marketing agencies started increasing fuel prices on November 20 after a hiatus of around two months. Since then, fuel has been hiked 14th times. The latest series of hikes have taken petrol and diesel prices to their highest level since September 2018. For the past 17 days, petrol has seen an overall hike of Rs 2.35 per litre and diesel rate rose by Rs 3.15. Rates vary from state to state depending on the incidence of local sales tax or VAT.
Oil marketing companies follow a daily pricing formula based on the latest international crude oil prices instead of retail prices in India. The daily price revision was suspended for around two months after coronavirus-induced lockdowns were imposed in India.
Meanwhile, Brent crude oil has risen 34 per cent from USD 36.9 per barrel on October 30 to USD 49.5 on December 4 - the last trading day - on hopes that COVID-19 vaccines would lead to demand recovery. Brent settled up 54 cents or 1.11% at $49.25 a barrel on December 4, which is highest since early March at $49.92. West Texas Intermediate rose 62 cents to $46.26 a barrel. "We're higher, despite super bearish events - it's all about the stimulus," said Bob Yawger, director of energy futures at Mizuho in New York, told Reuters.
With PTI inputs