Highest hike in fuel prices in recent weeks, following crude prices

Petrol price in Delhi rose to its highest-ever level of Rs 102.94 a litre and to Rs 108.96 in Mumbai, a government notification said. Diesel rates too touched a record high of Rs 91.42 in Delhi and Rs 99.17 per litre in Mumbai. Prices differ from state to state depending on the incidence of local taxes.

State-owned fuel retailers have in the past few days resorted to modest increases to align domestic rates with cost. But with international benchmark Brent crude soaring to $ 82.92 per barrel after the decision by OPEC+ not to increase output more than 0.4 million barrels per day, fuel rates are being increased by a larger proportion.

Oil marketing companies had kept increases to a modest level in anticipation of correction in crude oil and petroleum product prices in the international market.

The seventh increase in fuel rates since the ending of a nearly three-week hiatus has sent petrol prices above Rs 100 a litre in most major cities of the country. Similarly, the 10th increase in prices has shot up diesel rates above Rs 100 mark in several cities in Madhya Pradesh, Rajasthan, Odisha, Andhra Pradesh and Telangana.

International oil prices rallied to their highest level since 2014, following a decision by OPEC+ to maintain its planned gradual increase of supply, despite the market facing an energy crunch.

Global benchmark Brent jumped to $ 82.92 per barrel, while West Texas Intermediate rose to $ 79.25 a barrel. A month ago, Brent was around $ 72 per barrel. The price of LPG sold by Saudi Arabia has also gone up steeply, from $ 483 a tonne in May, to $ 797 in October. With international crude oil prices moving in both directions during July and August, no price increase was carried out by oil marketing companies (OMCs) from July 18 to September 23. However, with no respite from surging international prices, OMCs have started to increase the retail selling price of petrol and diesel with effect from September 28 and September 24, respectively.

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