On Monday, fuel prices in India climbed for the seventh consecutive day amid a rise in international rates.
Petrol prices per litre were raised to Rs 88.99 in New Delhi, Rs 90.25 in Kolkata, Rs 95.46 in Mumbai and Rs 91.19 in Chennai. Diesel prices per litre increased to Rs 79.35 in New Delhi, Rs 82.94 in Kolkata, Rs 86.34 in Mumbai and Rs 84.44 in Chennai.
International oil prices rose to their highest level in over a year on Monday after a Saudi-led coalition fighting in Yemen said it intercepted an explosive-laden drone fired by the Iran-aligned Houthi group, raising fears of fresh Middle East tensions. A spike in crude oil prices could mean further hikes in retail prices of fuel in India as these rates are revised on a daily basis based on the fluctuation in oil prices and rupee's exchange rates.
Brent crude was up 1.1% to $63.09 a barrel after climbing to a session high of $63.44, the highest since 22 January 2020. Hopes for more US stimulus and an easing of coronavirus lockdowns also helped support the rally, after prices gained around 5% last week.
Meanwhile, fuel prices have skyrocketed in the country with rates of nearly Rs 100 per litre in some parts of the country. On Sunday, according to a PTI report, the rate of petrol with additives crossed Rs 100 mark for a litre in Maharashtra's Parbhani district on Sunday morning.
The difference in prices across states is due to local, state and central government taxes imposed on fuel. Oil Minister Dharmendra Pradhan recently told the Rajya Sabha that the government has no plans at present to cut taxes on petrol and diesel in order to reduce prices.