Petrol Prices In India Hit New All-Time High

After the latest hike of 23 paise amid rising international oil prices, petrol rates in New Delhi hit an all-time high of Rs 84.2 per litre.

Rates were also hiked in other major cities. Petrol price per litre on 7 January stood at Rs 85.68 in Kolkata, Rs 90.83 in Mumbai and Rs 86.96 in Chennai.

Diesel prices per litre were raised by 26 paise to Rs 74.38 in New Delhi, Rs 77.97 in Kolkata, Rs 81.07 in Mumbai and Rs 79.72 in Chennai.

On Wednesday, oil marketing companies raised fuel prices after a 29-day hiatus. Rates of petrol and diesel were raised by 26 paise per litre and 25 paise a litre, respectively, in Delhi.

The record of highest ever rate of petrol in Delhi was earlier Rs 84 a litre, seen on 4 October 2018. On the same day, diesel rate scaled to its all-time high of Rs 75.45 a litre.

The increase in fuel prices comes after a jump in oil prices in the international market.

Brent crude, the international benchmark for oil prices, rose to $54.38 a barrel on Thursday as investors focusing on the likelihood of tighter supplies 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.

Retail prices of fuel in India are revised daily by oil marketing companies based on international crude oil rates and rupee's exchange value. However, local taxes add to the burden for consumers.

The central government had raised excise duty by Rs 13 per litre on petrol and by Rs 15 a litre on diesel in two instalments in March 2020 and May 2020 to garner additional revenue. States have also raised their taxes sharply on the two fuels post COVID-19, to make up for the loss of revenue during the lockdown period.