Fuel prices in India continue to rise even as international prices start cooling off. On Tuesday, petrol prices per litre were hiked to Rs 75.74 in New Delhi, Rs 78.33 in Kolkata, Rs 81.33 in Mumbai and Rs 78.69 in Chennai. Diesel prices per litre rose at twice the pace with a 12 paise hike to Rs 68.79 in New Delhi, Rs 71.15 in Kolkata, Rs 72.14 in Mumbai and Rs 72.69 in Chennai.
On the other hand, the international benchmark, Brent Crude fell as much as 1.5 percent to $67.86 a barrel, a significant fall from the $70-level seen on Monday.
The previous day's gains were based on fears of disruption in supply on a possible escalation in conflict between the US and the Middle East after American President Trump ordered airstrikes in Baghdad on 3 January that killed Iran's key political figure-Qassem Soleimani.
Oil prices declined after investors did not see any major retaliatory action from Iran. After over 36 hours of observation, analysts feel the potential for oil supply disruptions are low as Tehran needs foreign currency earnings from continued oil exports and blocking the Straits of Hormuz (an important shipping route for world's oil supply) would only counter their economic interests.
Further, prices are also largely supported by the high compliance of OPEC (Organization of the Petroleum Exporting Countries) to meet production quota set by member nations.
Petrol and diesel prices in India are revised on a daily basis according to international oil prices and foreign exchange rate of rupee.
Meanwhile, on Tuesday, Iran's parliament passed a bill that designated all US forces as "terrorists". The newly adopted bill, designates all US forces and employees of the Pentagon and affiliated organisations, agents and commanders and those who ordered the "martyrdom" of Soleimani as "terrorists".
Iran's Foreign Minister Mohammad Javad Zarif accused the US of basing its decisions on "miscalculations" and "misinterpretations" of the region.
"Our region, because of the US' intervention ... has become victim to the endless war," Zarif said. He said that the pattern needs to be broken as the ongoing wars in the region have provided a nesting ground for criminals. Zarif added that removing US forces from West Asia would end war and deaths.