The upwards price revision comes on the back of a recovery in crude oil prices in anticipation of tightening supply ahead, say analysts.
- Petrol, diesel prices hiked by 37-53 paise a litre in metros on Monday
- In Delhi, petrol price at Rs. 70.13 a litre, diesel at Rs. 64.18 a litre
- Crude oil recovery on tightening supply triggers domestic price hike
Petrol prices were hiked by 37-40 paise per litre and diesel rates by 49-53 paise per litre on Monday. That marked the fifth consecutive hike in domestic fuel prices, and the sixth overall so far this year. In Delhi, the price of petrol crossed the Rs. 70 a litre mark for the first time in 2019. The upwards price revision comes on the back of a recovery in crude oil prices in anticipation of tightening supply ahead, say analysts. Currently, oil marketing companies in the country revise the domestic prices of petrol and diesel on a daily basis, in line with the movement in international crude oil and rupee-dollar forex rates.
|Petrol price in rupees per litre|
|Diesel price in rupees per litre|
With effect from 6 am on January 14, petrol prices were at Rs. 70.13 per litre in Delhi, Rs. 72.24 per litre in Kolkata, Rs. 75.77 per litre in Mumbai and Rs. 72.79 per litre in Chennai, according to Indian Oil Corporation – the country’s largest fuel retailer. Diesel prices stood at Rs. 64.18 per litre, Rs. 65.95 per litre, Rs. 67.18 per litre and Rs. 67.78 per litre respectively.
Besides Monday’s hike, petrol and diesel were hiked on January 7, and every day from January 10 to January 13. The hike on January 13 was the steepest so far this year.
|Date||Hike in price in paise per litre (Delhi, Mumbai, Kolkata, Chennai)|
Global crude oil rates have gained strength after the implementation of production cuts by top producers, recovering from levels below $50 a barrel registered last month.
Brent crude futures – the international benchmark for crude oil – dropped by $1.2 to settle nearly 2 per cent lower at $60.48 a barrel on Friday. The global crude benchmark had the previous day logged its first nine-day rally since September 2007.