Fuel prices across Indian cities were increased on Tuesday by state-owned oil marketing companies. While petrol prices were hiked after a 3-day break (2 days in some cities), diesel prices have been increased for the second consecutive day. It is the third time in seven days that the rates were revised upwards.
Petrol prices in major cities
Petrol price per litre was raised by 5 paise to Rs 73.13 in New Delhi, Rs 75.15 in Kolkata, Rs 78.70 in Mumbai and Rs 75.90 in Chennai.
Diesel price per litre was increased by 5-6 paise to Rs 66.71 in New Delhi, Rs 68.45 in Kolkata, Rs 69.83 in Mumbai and Rs 70.44 in Chennai.
The global crude oil benchmarks rallied in the last week after the Trump administration announced that it will not renew the exemptions made on US sanctions imposed on Iranian imports for major buyers including India. The waiver period of 6 months will end on 2 May, and the focus is now shifted on voluntary supply cuts that were imposed by the Middle East dominated producer club OPEC (Organisation of Petroleum Exporting Countries) at the start of this year.
However, on Monday, the prices eased after American President Donald Trump said that he has urged the OPEC to raise output to bring prices down. China's disappointing factory output data also aided the decline.
Volatility in prices will be expected in the near short term as Trump continues his attempts to reduce Iranian oil exports to zero.
Brent crude futures as well as U.S. West Texas Intermediate (WTI) crude futures were trading lower from their previous settlement at $71.75 and $63.35 per barrel, respectively.