Petrol and diesel prices were hiked on Tuesday, September 28, after international oil prices soared to a three-year high.
Petrol price was hiked by 19 to 25 paise per litre and diesel by 24 to 27 paise per litre, according to a price notification of state-owned fuel retailers.
In Delhi, petrol prices were increased by 20 paise from Rs 101.19 per litre to Rs 101.39 per litre, whereas diesel has become dearer by 25 paise from Rs 89.32 per litre to Rs 89.57 per litre.
Fuel prices differ from state to state depending on the incidence of local taxes such as value-added tax (VAT) and freight charges.
In Mumbai, the retail price of petrol jumped to Rs 107.47 per litre on Tuesday. Diesel price also increased in the city by 27 paise per litre to reach Rs 97.21 a litre, the highest among metros.
In Chennai, petrol is retailed at Rs 99.15 and diesel at Rs 94.17 per litre while in Kolkata, petrol costs Rs 101.87 and diesel Rs 92.67 per litre.
Crude oil prices have reached a nearly three-year high as global output disruptions have forced energy companies to draw more crude oil out of their stockpiles. Accordingly, US crude oil inventory levels are also nearing a three-year low.
"Global demand for crude oil has been increasing consistently with the easing of pandemic restrictions and improving vaccination rates. On the supply side, OPEC+ alliance has been slow in easing output restrictions, contributing to the tightened supply in the market," a source told news agency PTI.
Additionally, hurricanes Ida and Nicholas have impacted crude oil production in the US Gulf of Mexico region, when they hit in late August and September respectively.
As per both IEA and OPEC, global demand is expected to outpace supply due to which international oil prices will likely remain firm in the near to mid-term. A simultaneous rally in natural gas is also likely to drive demand for alternate fuels.
State-owned Indian Oil Corp (IOC), Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL) had on September 24 resumed daily price revisions, ending the pause in rates since September 5.
When international oil rates fell in July and August, retail prices of petrol and diesel in the Delhi market were reduced by Rs 0.65 and Rs 1.25 per litre. Prior to that, petrol price was increased by Rs 11.44 a litre between May 4 and July 17. Diesel rate had gone up by Rs 9.14 during this period.
The price hike during this period pushed petrol prices above the Rs 100-a-litre mark in more than half of the country, while diesel crossed that level in at least three states. India is dependent on imports to meet nearly 85 per cent of its oil needs and so benchmarks local fuel rates to international oil prices.
(With inputs from PTI)
