Even as global crude prices retreated lower as the US-Iran tensions subsided, auto fuel in India is seeking a hike and due to the recent hike there in the global markets, diesel on Thursday hit a high of Rs. 68.94 per litre. On January 6, petrol scaled to a 409 day high.
Petrol and diesel prices have been revised daily following a dynamic model since June 15, 2017 and the price of the fuel in the domestic markets is arrived at by using a formula which makes use of a trade parity price. The oil marketing companies here use the rolling 15-day price of crude in the international markets.
The average price of Indian basket of crude in December was $65.52 per barrel, while that of Brent was $67.19 per barrel. This has come as both the US and Iran signaled of not being interested to delve into a deeper conflict.