Fuel prices witness sharp rise; petrol gets costlier by 23p
Fuel prices on Sunday witnessed a sharp hike for the fourth straight day as state-run oil companies increased the rate of petrol by 23 paise a liter while diesel became costlier by 29-31 paise per liter across the four major metro cities in India. Petrol in Delhi now costs Rs. 70.95/liter while the diesel rate touched Rs. 65.45/liter (following 29 paise hike). Here's more.
The price hike comes as global crude oil rates continued to rise after international oil producers implemented production cuts from 1 January. This is one of the sharpest hikes in January; petrol and diesel prices rose by over Rs. 2/liter each this month so far.
Following the latest fuel price hike, petrol rate in Mumbai, Kolkata, and Chennai touched Rs. 76.58, Rs. 73.05, and Rs. 73.65 respectively. Meanwhile, diesel in Mumbai, Kolkata, and Chennai now costs Rs. 68.53, Rs. 67.23, and Rs. 69.14 respectively. Due to the dynamic pricing mechanism in India, domestic fuel prices vary according to global fuel prices on a 15-day average and the rupee value.
After the Organization of Petroleum Exporting Countries (OPEC) and non-OPEC producers implemented output cuts, the global crude oil rates have been on the rise. Over the weekend, the international benchmark Brent crude oil closed at over $62/barrel after slipping to below $50 in December.