Petrol price in Mumbai climbed back at Rs 80 a litre on Saturday in just weeks on the back of rising crude oil price. Petrol and diesel prices have been a rising streak since the beginning of this month. According to Indian Oil’s website, petrol prices on March 5 in four metro cities were: Delhi Rs 72.32 a litre; Kolkata Rs 75.06; Mumbai Rs 80.19; and Chennai Rs 75.
Diesel prices on March 5 in four metro cities were: Delhi Rs 62.89 a litre; Kolkata Rs 65.58; Mumbai Rs 66.97; and Chennai Rs 66.31. The International benchmark Brent crude, meanwhile, was up 44 cents, or 0.68%, at $64.81 a barrel and US West Texas Intermediate (WTI) crude rose 41 cents, or 0.67%, to $61.66 per barrel ahead of a meeting between OPEC and US shale firms in Houston triggering expectations that they might discuss production cuts further.
The fuel prices were cut between 1 paisa and 21 paise since February 8 till the end of the month after Brent crude oil price began falling from its three-year high of $71 a barrel in mid-January. Although, fuel prices are not solely decided on crude oil prices, but they are a significant factor in the revision of petrol and diesel prices.
Until 2010, the government was regulating fuel prices in India. However, after that, they were de-regularised and are revised by oil companies mostly under the free-market system. Another significant development for the revision of fuel prices came on June 16 last year when instead of fortnightly revision, oil companies decided to revise it on a daily basis as per the international practice.
On fuel prices, the Narendra Modi government has indicated that at current levels, it has no plan for an immediate relief through a cut in the excise duty. In January, the oil ministry had hinted that the government was mulling over the relief, when and if, Brent crude oil touched $75 per barrel.