Petrol, Diesel Prices Hiked In India After Crude Oil’s Record Surge

Fuel rates in India were hiked on Tuesday by state-owned oil retailers following a jump in international crude oil prices because of drone attacks on Saudi Arabia's oil facilities.

Petrol prices per litre were increased by 18 paise to Rs 77.21 in Delhi, Rs 77.83 in Mumbai, Rs 74.61 in Bengaluru and Rs 74.97 in Chennai. Diesel prices per litre saw a 33 paise hike to Rs 65.61 in Delhi, Rs 68.76 in Mumbai, Rs 67.79 in Bengaluru and Rs 69.29 in Chennai, according to a price notification issued by Hindustan Petroleum.

Fuel prices in India are revised every day based on global crude oil prices and foreign exchange rates in the last 15 days.

Brent crude futures, the international benchmark for crude oil prices in Asia, soared by almost 20 percent in intraday trade on Monday, the biggest jump seen in 30 years. It closed 15 percent higher than its previous close on Monday.

The uncertainty around the restoration of supply also put pressure on equities markets around the globe.

On Tuesday, Brent crude eased by 1.1 percent to trade at $68.29 per barrel.

On Saturday, oil processing facility at Abqaiq and the nearby Khurais oil field were attacked by drone strikes, knocking out 5.7 million barrels of daily crude production or 50 percent of Saudi Arabia's oil output. Abqaiq is the world's largest oil processing facility.

Yemen's Houthi rebels have claimed responsibility for the attack, according to a Reuters report, and said that it was one of their largest attacks ever inside the kingdom. The group has been behind a series of attacks on Saudi pipelines, tankers and other infrastructure in the past few years.

Meanwhile, India's oil minister in a tweet on Monday said that senior management at Saudi's Aramco has ensured that there will be a steady supply of oil to India.

Following the attacks on the oil stabilization centres of @Saudi_Aramco, top executives of Aramco have been contacted. Indian ambassador in Riyadh @IndianEmbRiyadh contacted the senior management of Aramco to ensure steady supply to India.

— Dharmendra Pradhan (@dpradhanbjp) September 16, 2019

We have reviewed our overall crude oil supplies for the month of September with our OMCs. We are confident there would be no supply disruption to India. We are closely monitoring the evolving situation.

— Dharmendra Pradhan (@dpradhanbjp) September 16, 2019

India imports 83 percent of its oil needs, with Saudi Arabia being its second-biggest supplier.