Petrol and diesel prices were sharply hiked on Sunday (January 13) as global crude oil prices remain firm amid longest winning streak in almost a decade.
While petrol and diesel prices had been increasing steadily for the past 3 days, today’s hike is significant.
Major oil PSUs have increased petrol rates by 49-60 paise while diesel rates have been hiked by 59-75 paise. This is one of the steepest hikes in fuel rates over the past few months, indicating the prices could be increased further in the near future.
In Delhi, a litre of petrol would now cost Rs 69.75 while diesel price has gone up to Rs 63.69/litre, up from Rs 63.10/litre on Saturday. Commuters in Mumbai, the country’s financial capital, will have to pay Rs 75.39 for a litre of petrol and Rs 66.66 for a litre of diesel after an increase of 62 paise.
Petrol prices in Kolkata (Rs 71.87/litre), Chennai (Rs 72.40/litre), Gurgaon (Rs 70.80/litre), Bengaluru (Rs 72.04/litre), Hyderabad (Rs 74/litre) and Patna (Rs 73.92/litre) have also increased significantly after today’s hike.
Diesel prices, too, shot up steeply in many cities with Hyderabad (Rs 69.24/litre), Trivandrum (Rs 68.51/litre), Bhubaneshwar (Rs 68.14/litre), Chennai (Rs 67.26/litre), Patna (Rs 66.99/litre), Mumbai (Rs 66.66) and Jaipur (Rs 66.36/litre), Kolkata (Rs 65.46/litre) and Bengaluru (Rs 65.78/litre).
Today’s steep hike can be attributed to the good market run of global crude benchmarks over the past two weeks. In addition, Saudi Arabia’s decision to cut crude production to the tune of 8,00,000 barrels per day has also helped in firming oil prices.
The development is expected to hurt India, which is the third-highest importer of crude oil in the world. Petrol and diesel prices in the country reached their respective peak levels on October 4 amid constrained oil production and sanctions.
However, prices soon fell due to overproduction by certain oil-producing countries, leading to a 30 per cent drop in crude oil prices. Since then, the OPEC-led nations have reached a consensus on curbing excess oil production.
If at all there is another meteoric rise in rates of petrol and diesel, chances are high that the government will again ask major oil PSUs to absorb the excess rate.