Fuel prices in the country were increased for the first time in 20 days as international crude continues its upward price movement on Monday morning. Petrol price per litre was increased to Rs 68.50 in New Delhi, Rs 73.95 in Mumbai, Rs 71.07 in Chennai and Rs 70.64 in Kolkata. Diesel prices per litre were hiked to Rs 62.64 in New Delhi, Rs 65.12 in Mumbai, Rs 65.70 in Chennai and Rs 70.43 in Kolkata.
Petrol prices across Indian cities had touched their 15-month on Sunday after days of rate cuts. It was trading lower than it was in October 2017. Base rates on which the retail price of fuel is set in India is based on the valuation of the crude benchmark Brent and the exchange rate of the Indian rupee.
Brent crude futures lost greatly between mid-October and the end of December amid concerns of oversupply due to the increase the in oil production by Saudi Arabia and a slowdown in global economic growth. As it plummeted from $80 a barrel to below $50 levels, fuel rates in India also saw a decline. However, the trend may change this month as supply cuts from Saudi Arabia and its major allies will kick in as agreed in the recent OPEC meet. Additionally, the oil market was feeling optimistic on Monday about the ongoing trade talks between the US and China. Brent crude gained 1.2 percent or 69 cents to be trading at $57.75 a barrel.