Petrol, Diesel Prices Up For The 10th Straight Day

On Thursday, fuel prices in India were up for the tenth straight day, climbing new all-time highs.

Petrol prices per litre rose to Rs 89.88 in New Delhi and Rs 96.32 in Mumbai.

Diesel prices per litre were up to Rs 80.27 in New Delhi and Rs 87.32 in Mumbai.

In the international market, oil prices rose on Wednesday, buoyed by frigid Texas temperatures that curtailed production in the largest American producing state, offset somewhat by reports that Saudi Arabia plans to increase output in the coming months.

Brent crude, the global benchmark for oil prices, gained 1.56% to settle at $64.34 a barrel in New York on Wednesday.

Fuel rates in India are revised on a daily basis based on changes in international oil prices as well as rupee's exchange rate. However, the difference in prices across states is due to local, state and central government taxes on petrol and diesel. A large percentage, that is up to 60%, of the retail price on petrol or diesel price paid by consumers in the country is just a form of central, state or local tax. In some areas of Maharashtra or Rajasthan, premium petrol prices have crossed Rs 100 per litre.

On Wednesday, Prime Minister Narendra Modi said that the middle-class would not have been burdened if the previous governments had focussed on reducing India's energy import dependence. Without referring to the relentless increase in retail fuel prices, which are linked to international rates, he said India imported over 85% of its oil needs in the 2019-20 financial year and nearly 53% of its gas requirement.