Petrol moves above Rs90 a litre in Mumbai as crude prices spike
24 September 2018
The price of petrol crossed the Rs90 a litre mark to hit Rs90.08 in Mumbai today after state-run fuel retailers announced a 11 paise hike in the retail price of the fuel. Diesel, which is comparatively cheaper, is being sold at Rs78.58 per litre in Mumbai.
The hike in fuel prices follows a spike in the prices of crude oil in international markets and a combination of rising dollar and falling rupee values since mid-August.
Oil prices jumped more than 2 per cent to a four-year high on Monday after the Organisation of oil Producing and Exporting Countries (Opec) declined to announce an immediate increase in production despite calls by US President Donald Trump for action to raise global supply.
Benchmark Brent crude hit $80.94 per barrel, up $2.14 or 2.7 per cent, its highest since November 2014 before easing back to around $80.65 by 1000 GMT. US sweet light crude was $1.25 higher at $72.03.
A combination of a dip in the value of rupee against the dollar and rise in crude oil prices has led to a spike in fuel prices since mid-August. Fuel prices in India have risen by more than Rs5 per litre - the most in any single month since the daily revision in fuel prices was introduced in June last year.
After state-run oil marketing companies announced a 11 paisa increase in the price of a litre of petrol, the fuel now costs Rs82.72 in Delhi, Rs84.54 in Kolkata, and Rs85.99 in Chennai.
Diesel prices also rose and the fuel is now being sold at Rs78.58 per litre in Mumbai, Rs74.02 per litre in Delhi, Rs75.87 per litre in Kolkata and Rs78.26 per litre in Chennai.
Delhi has the cheapest fuel rates among all metros and most state capitals because of lower taxes. Mumbai has the highest sales tax or Value Added Tax (VAT).
The spike in crude prices come after Opec leader Saudi Arabia non-Opec producer Russia on Sunday ruled out any immediate extra increase in output, effectively rebuffing a call by Trump for action to cool the market.
"I do not influence prices," Saudi Energy Minister Khalid al-Falih told reporters as Opec and non-OPEC energy ministers gathered in Algiers for a meeting that ended with no formal recommendation for any additional supply boost.