Petrol Price In India Close To Breaching All-Time High

On Wednesday, fuel prices were hiked in New Delhi after remaining unchanged for 29 days.

Petrol prices per litre were raised by 26 paise to Rs 83.97 in New Delhi, Rs 85.44 in Kolkata, Rs 90.60 in Mumbai and Rs 86.75 in Chennai.

Diesel prices per litre rose by 25 paise to Rs 74.12 in New Delhi, Rs 77.70 in Kolkata, Rs 80.78 in Mumbai and Rs 79.46 in Chennai.

Petrol rate in Delhi is now close to the all-time high of Rs 84 per litre seen in September 2018.

The rise in retail prices of fuel in India comes after a jump in oil prices in the international market. Brent crude, the international benchmark for oil prices, rose to $53.94 a barrel, the highest since February after Saudi Arabia agreed to make bigger cuts in output than expected during a meeting with allied producers. Further, industry data showed that US crude stockpiles fell last week, supporting crude oil prices.

On Tuesday, Saudi Arabia, the world's biggest oil exporter, agreed to make additional, voluntary oil output cuts of 1 million barrels per day (bpd) in February and March, after a meeting with the Organization of the Petroleum Exporting Countries (OPEC) and other major producers.

As the coronavirus threat refuses to curb and some countries impose new lockdowns, world producers are looking at ways to support prices.

Iran's seizure of a South Korean tanker in the Gulf also supported prices on Wednesday.

Retail prices of fuel in India are revised daily by oil marketing companies based on international crude oil rates and rupee's exchange value.