On Monday, Indian cities see the first hike in diesel prices since 16 October. Fuel prices were increased by the country's oil marketing companies amid climbing international crude oil prices.
Petrol prices per litre were revised higher to Rs 70.53 in New Delhi, Rs 76.15 in Mumbai, Rs 72.62 in Kolkata and Rs 73.19 in Chennai. Diesel prices per litre rose to Rs 64.47 in New Delhi, Rs 67.47 in Mumbai, Rs 66.23 in Kolkata and Rs 68.07 in Chennai.
On Sunday, petrol prices were largely unchanged and diesel prices were cut by 13 paise to their lowest in the year 2018. Fuel prices have been now eased by 15 to 20 percent from their all-time highs seen at the beginning of October as a result of a two-month downfall in international crude prices amid oversupply concerns.
However, after the OPEC (Organization of Petroleum Exporting Countries) and its allies agreed to cut production by 1.2 million on 6 December, there has been a gain in international oil price benchmark Brent that lingered near the $62 a barrel level. There has been volatility in the price since, due to analyst concerns of slowing economic growth globally, especially in China, the biggest importer of crude oil in the world.
After a momentary loss on Friday, Brent regained on Monday amid reports of a fall in US drilling activity to its lowest in 2 months. This resulted in an increase in fuel prices in India.