Petrol, Diesel Rates Hit New Highs, Prices Up By 1 Rupee This Week

On Saturday, fuel prices in India were raised to new all-time highs by state-owned oil marketers.

Petrol prices per litre were up 25 paise to Rs 85.70 in New Delhi, Rs 87.11 in Kolkata, Rs 92.28 in Mumbai and Rs 88.29 in Chennai.

Diesel prices per litre were also hiked by 25 paise to Rs 75.88 in New Delhi, Rs 79.48 in Kolkata, Rs 82.66 in Mumbai and Rs 81.14 in Chennai.

Retail prices of fuel in India are revised every day based on changes in international prices, foreign exchange rates, central government duties and local sales tax or VAT.

This is the second consecutive day of a rate increase and the fourth this week. In all prices have gone up by one rupee per litre this week.

In the international market, oil prices slipped for another day on Friday after industry data showed a surprise increase in US crude inventories and new pandemic restrictions in China revived fuel demand concerns.

The global benchmark, Brent crude futures, was down by 1% or 60 cents to $55.50 a barrel. However, petrol and diesel prices in India are revised based on the 15-day average of international rates. On Tuesday and Wednesday, the benchmark rose over expectations of massive COVID-19 relief spending under new US President Joe Biden.

Oil Minister Dharmendra Pradhan earlier this week blamed Saudi oil output cut for the surge in oil prices but remained non-committal on tax cuts.