Fuel prices rose to a new record on Monday after state oil companies hiked petrol and diesel prices by 25 paise per litre each. Petrol sold for record Rs 84.95 a litre in Delhi and Rs 91.56 in Mumbai on Monday. Diesel cost Rs 75.13 per litre in Delhi and Rs 81.87 in Mumbai. Diesel prices in Mumbai are at an all-time high. Diesel rates in Delhi are highest since last July.
Hike in domestic fuel prices follows a recent surge in international crude oil price that’s risen to $55 a barrel. A 40% rise in crude oil prices since the beginning of November has been driven by rebounding economies and rollout of Covid vaccines across several nations. Saudi Arabia’s recent surprise decision to cut its production by one million barrels a day has also boosted prices.
Rising Covid cases in China, Europe and the US, as well as measures reintroduced at many places to deal with the spread of the virus, are also weighing on oil prices.
Domestic fuel retailers are expected to daily revise rates of petrol and diesel after factoring in changes in the international fuel prices and the currency market.