Petrol and diesel prices were increased up to 18 paise across metro cities on Tuesday after a hiatus of 18 days. In Delhi, petrol prices were hiked by 15 paise per litre from Rs 90.40 per litre to Rs 90.55 per litre and diesel rates have been raised by 18 paise from Rs 80.73 a litre to Rs 80.91 per litre, as per a price notification by the Indian Oil Corporation.
In Mumbai, the petrol price was hiked by 12 paise from Rs 96.83 to Rs 96.95 a litre, whereas diesel rate saw a 17 paise increase Rs 87.81 to Rs 87.98 per litre. The financial capital currently has the highest fuel rates among the four metros. Petrol and diesel prices differ across states due to the value-added tax.
Below mentioned are the latest petrol and diesel prices in four metro cities:
City Petrol Diesel
Mumbai 96.95 87.98
Chennai 92.55 85.90
Delhi 90.55 80.91
Kolkata 90.76 83.78
Source: Indian Oil
The state-owned oil marketing companies - Hindustan Petroleum, Indian Oil Corporation, and Bharat Petroleum adjust domestic fuel rates with global crude oil prices by taking into consideration changes in the foreign exchange rates. The fuel price changes come into effect from 6 am each day. This is the first cut in petrol and diesel prices in the month of April while crude oil has now surpassed $66 per barrel in the international market.
Fuel rates have been steady across India for 18 days in a row till Monday, May 3, revised on April 15.
The prices were hiked in continuity, shooting up to a new record level before the announcement of assembly elections in four states. However, with the polls over now, petrol and diesel rates are expected to be hiked again.
Central and state taxes make up for 60 per cent of the retail selling price of petrol and over 54 per cent of diesel. The union government levies Rs 32.90 per litre of excise duty on petrol and Rs 31.80 on diesel.
International crude oil prices
Oil rose more than 1% on Monday, May 3, as Chinese economic figures and US vaccination rates pointed to a strong rebound in demand in the world's two largest economies.
Investors remain wary, however, over record-breaking infection rates in India, the third-largest fuel importer worldwide, along with higher OPEC+ oil supply.
Brent crude rose 80 cents, or 1.2%, to settle at $67.56 a barrel US West Texas Intermediate rose 91 cents, or 1.4%, to settle at $64.49 a barrel.
Brent has rallied almost 30% this year, recovering from last year's historic lows thanks to record supply cuts by the Organization of the Petroleum Exporting Countries and its allies, together known as OPEC+.