Fuel is on fire as petrol and diesel prices have been increased by further 30 paise each. In Delhi, you need to shell out Rs 86.95 for one litre of petrol. Diesel will cost Rs 77.13 per litre in the national capital.
Apart from Delhi, fuel rates have snowballed in other metropolitan cities as well. In Mumbai, a litre of petrol costs Rs 93.49 whereas in Chennai, petrol has reached Rs 89.39 per litre after the 30-paise hike.
People in Kolkata and Hyderabad have to shell out Rs 88.30 and Rs 90.42 per litre respectively. As of February 5, diesel prices have skyrocketed to Rs 83.99 per litre in Mumbai; Rs 82.33 per litre in Chennai; Rs 80.71 per litre in Kolkata and Rs 84.14 per litre in Hyderabad.
State-run oil marketing companies (OMCs) revise petrol and diesel prices daily on the basis of international oil prices and foreign exchange rates. Global oil prices reached their highest levels in around a year on the back of global oil producers' commitment to hold back crude supply and signs of economic growth in the US.
Brent Crude futures reached its highest since February 20 last year and rose by 40 cents or 0.7 per cent to $59.24 per barrel. US West Texas Intermediate (WTI) crude futures reached to its highest since January 22 last year and jumped by 42 cents or 0.8 per cent to $56.65 per barrel, according to a Reuters report.
Fluctuations in global oil prices and foreign exchange rates are not the only causes behind the rise in fuel rates. Other reasons for hike in petrol and diesel rates are central excise duty and states' Value Added Tax (VAT).