Fuel prices in India were raised for the sixth consecutive day ahead of the re-imposition of US sanctions on one of the major oil exporters, Iran. Petrol prices in three metro cities crossed the Rs 80 per litre mark to Rs 84.50 in Mumbai, Rs 80.05 in Chennai and Rs 80 in Kolkata. In the national capital, it was priced at Rs 77.06 per litre.
Diesel prices per litre were also hiked to Rs 68.50 in New Delhi, Rs 72.72 in Mumbai, Rs 71.31 in Kolkata and Rs 72.35 in Chennai, according to state-owned oil retailer IOCL's official website.
Starting 12 am (Washington time) on Tuesday, strict sanctions will be reimposed by the USA on Iran. In May, the US President Donald Trump withdrew from the Iran nuclear deal that the Obama administration had entered into, which had removed some financial penalties on the country.
Despite opposition from US allies in Europe, China, and India, the US government wants as many countries as possible to stop buying Iranian oil.
Talking to the reporters on Monday, a senior US administration official said, "It is our policy to get as many countries to zero as quickly as possible. We are going to work with individual countries on a case by case basis, but our goal is to reduce the amount of revenue and hard currency going into Iran."
Two of the fastest growing economies in the world, India and China make up for 80 percent of Iran's exports. In a time where the world is already facing a shortage in oil production, this could push the fuel prices higher.