Petrol price in India was hiked on Tuesday after over two months. Fuel prices across the country increased as international crude oil prices had climbed to a three-year high. While petrol had become expensive by up to 19 to 25 paise per litre, diesel price was up by 24 to 27 paise per litre.
Fuel prices were at all-time high in India. A litre of petrol would cost Rs 107.47 in the financial capital. In Delhi, the retail price of petrol jumped to Rs 101.39 per litre after the recent price revision. This was the first increase in petrol price after July 17, according to state-run oil companies. The petrol price rose to Rs 101.87 in Kolkata. In Chennai, a litre of petrol was available at Rs 99.15 per litre.
Diesel price saw a steep hike on Tuesday, fourth time since last week. With the latest revision, a litre of diesel was priced at Rs 97.21 in Maharashtra’s capital. In Delhi, you would have to shell Rs 89.57 to buy a litre of auto fuel. Diesel price shot up to Rs 92.67 per litre in Kolkata and Rs 94.17 per litre in Chennai.
State-owned Indian Oil Corp (IOC), Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL) had resumed daily price revisions on September 24 after a hiatus of nearly three-weeks.
International oil prices rose for the sixth straight day on September 28 on tighter supplies because of rising demand in parts of the world. Brent crude futures gained 42 cents, or 0.5 per cent, to $79.95 a barrel at 0248 GMT, reaching its highest since October 2018. US West Texas Intermediate (WTI) crude futures climbed 41 cents, or 0.5 per cent, to $75.86 a barrel, hitting its highest since July.
“Global supplies have tightened due to the fast recovery of fuel demand from the outbreak of the Delta variant of the coronavirus and Hurricane Ida’s hit to US production. US supply constraints will continue to provide upside to oil prices, as Ida-related outages will still affect US supply in the first quarter of 2022,” said Sriram Iyer, senior research analyst at Reliance Securities.
The price of auto fuel in India depends on international crude oil prices, rupee-dollar exchange rate. Moreover, the central government and states levy various taxes — excise duty and Value Added Tax (VAT) on petrol and diesel. Dealer’s commission and freight charges are also added in the fuel price. It must be noted that petrol and diesel do not come under the purview of goods and services tax (GST).
“Markets will look to cues from the inventory data this week, starting with API data tonight and EIA data on Wednesday. Technically, WTI Crude Oil above $75.00 level could see sideways to marginal upside momentum up to $75.65-$75.90 levels. Support is at $74.90-$74.10 levels. On the domestic front, MCX Crude Oil October above Rs 5,550 could see upside push up to Rs 5,600-5,630 levels. Support is at Rs 5,540-5,510 levels,” Iyer added.