Petrol and diesel prices have increased for the fourth day straight amid the escalating tensions between US and Iran. Global oil prices saw a spike after US' airstrike at the Baghdad airport killed top Iranian commander General Qassem Soleimani.
Petrol prices increased by 9 paise per litre, while diesel prices increased by 11 paise per litre. A litre of petrol in Delhi now costs Rs 75.54 per litre, the highest in more than a year. A litre of diesel will now cost Rs 68.51.
Sunday's price increase is the fourth straight day of retail prices going up. Since January 2, petrol price has increased by 38 paise per litre while diesel rates have gone up 55 paise.
Oil prices jumped more than 3 per cent on Friday, after the killing of Soleimani. Oil markets will reopen on Monday after the weekend break.
"The killing of Soleimani represents a significant spike in geopolitical risks and could lead to a direct confrontation between the US and Iran," Oxford Economics said in a commentary.
India is 84 per cent dependant on imports to meet its oil needs and any spike in global prices has a direct bearing on its economy. Not just imports but even domestic crude oil -- which forms the raw material for making petrol, diesel and other petroleum products -- is priced according to international benchmarks.
Middle East accounts for more than two-thirds of the country's oil imports, with Iraq and Saudi Arabia being the top suppliers.
Officials said there is no immediate threat of any supply disruption to India and the only impact would be felt in prices.
"Nowhere in the world has seen any supply being stopped because of US strikes. Oil continues to flow as normal," an official said.
Prices were unchanged over the new year. Rates of petrol have been on the upswing since December 26 and that of diesel since November 29, 2019. Diesel prices have increased by Rs 2.78 per litre over this period while petrol has become costlier by 91 paise.