Petrol Prices Hit New Highs; Crosses Rs 92 Mark In Mumbai For The First Time

On Friday, 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 85.45 in New Delhi, Rs 86.87 in Kolkata, Rs 92.04 in Mumbai and Rs 88.07 in Chennai.

Diesel prices per litre were also hiked by 25 paise to Rs 75.63 in New Delhi, Rs 79.23 in Kolkata, Rs 82.40 in Mumbai and Rs 80.90 in Chennai.

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

In the internaional market, oil prices slipped on Thursday after industry data showed a surprise increase in US crude inventories that revived pandemic-related fuel demand concerns, while US stimulus hopes buoyed prices.

Global benchmark, Brent crude futures, was down by 3 cents to $56.05 a barrel. However, petrol and diesel prices in India are revised based on the 15-day average of international rates. In the last two days, the benchmark rose over expectations of massive COVID-19 relief spending under new US President Joe Biden.

Oil prices have also been rising as compliance with a deal to cut output from the Organization of the Petroleum Exporting Countries (OPEC) and its allies fell in December from November. Compliance reached 99% last month, two sources told Reuters. A cut in OPEC's output has been keeping rates high amid vaccination drives in all major economies.

Meanwhile, rising coronavirus cases in China, the world's largest crude oil importer, has been weighing on oil prices.