ince March 21, the petrol price has surged 70 paise and diesel price has surged 97 paise as Brent crude oil futures also crossed $70 a barrel mark. Here are petrol and diesel prices in four metro cities.
At the beginning of February petrol and diesel prices began falling on the back of lower crude oil price but since the middle of last week, they are on a rising spree again, and you may not have paid attention. Both petrol and diesel prices are now at a one-and-a-half month high.
According to According to Indian Oil’s website, the petrol price in Delhi was Rs 72.90 per litre; Kolkata Rs 75.63; Mumbai Rs 80.77; and Chennai Rs 75.61. The diesel price in Delhi was Rs 63.77 a litre; Kolkata Rs 66.46; Mumbai Rs 67.91; and Chennai Rs 67.25. This level was last seen on February 14. While petrol price since then has fluctuated, it was March 21, when it began rising continuously by as much as 24 paise in a day. Similar was the case with diesel price.
Since March 21, the petrol price has surged 70 paise and diesel price has surged 97 paise. Meanwhile, US West Texas Intermediate (WTI) crude futures were at $65.69 a barrel at, up 14 cents, or 0.2%, from their previous close. Brent crude futures were at $70.20 per barrel, up 8 cents, or 0.1%.
The Brent crude oil futures once again hit $70 mark recently due to middle-east tension, production cuts, and global market’s reaction to the trade war. The ripple effect was also seen on Rupee, which slumped to a 3 month low. All of the factors together is believed to have pushed petrol, diesel prices up.
As the government deregulated fuel prices in India in 2010, it is mostly guided by the market. However, the government can provide some relief through cuts in excise duties levied on fuel price. Last October to give some relief to common people, the government had announced a Rs 2 a litre cut in petrol and diesel prices, which did not last long due to rallying crude oil prices.