Fuel prices reached a record high on Monday as state oil companies hiked diesel and petrol prices by 25 paise per litre each.
Petrol is available at Rs 84.95 per litre in Delhi while the rate is Rs 91.56 per litre in Mumbai. Diesel rates also reached new highs on Monday. In New Delhi, diesel is available at Rs 75.23 per litre while in Mumbai diesel is available for Rs 81.87 per litre. While diesel prices in Mumbai are at an all-time high, they are the highest they have been since July 2020 in the national capital.
The hike is a result of a recent surge in international crude oil prices. Crude oil has risen to $55 per barrel.
Crude oil prices have risen by around 40% since the beginning of November 2020 due to rebounding of economies with the rollout of COVID-19 vaccines.
Saudi Arabia's decision to slash its crude oil production by one million barrels has also contributed to the price rise. Increasing COVID-19 cases in Europe, the US and China and reintroduction of precautionary measures to halt the spread of the virus has also led to a hike in crude oil prices.
Indian fuel retailers are expected to perform daily petrol and diesel price revisions after factoring in changes in international crude oil prices and the currency market. The retailers had temporality done away with this age-old process for almost a year in 2020 thus making domestic fuel price patterns harder to comprehend.
State oil companies continue to vary prices of fuel, sometimes rapidly, at various intervals to keep up with the international fuel market changes and also to maintain their profit margins.