Petrol and diesel prices rose sharply by 25 paise per litre on Wednesday after oil marketing companies made a decision to break the momentary pause in the wake of a sudden spike in the global oil prices. From Monday onwards, the petrol price has been hovering past Rs. 74 a litre.
The rise in fuel prices was caused by the latest jump in the crude oil prices, with Brent crude trading above $57 per barrel, due to decline of stockpiles in the US.
In Delhi, petrol now costs Rs 84.45 per litre and diesel is priced at Rs 74.63. The petrol is available in Kolkata, Mumbai and Chennai at Rs. 76.77, Rs. 81.92 and Rs. 76.84, respectively, on Thursday. US West Texas Intermediate (WTI) was up 1.3 per cent at Dollars 53.88 a barrel, while Brent crude was up 79 cents at USD 57.37. Following this, rates rose on two consecutive days before they hit a pause button again.
At Rs 84.45 a litre in Delhi, petrol price has breached the highest level in the national capital after October 4, 2018, when the rate had risen to Rs 84 a litre. Similarly in Kolkata, petrol has reached Rs 85.92 and diesel Rs 78.22 and in Chennai, petrol has reached Rs 87.18 and diesel Rs 79.95.
Petrol price was very close to breaching the all-time high level of Rs 84 a litre (reached on October 4, 2018) when it touched Rs 83.71 a litre on December 7, 2020. Alongside, state-owned fuel retailers cut prices by another Re 1 a litre, which they recouped later.
Indian Oil Corporation, Bharat Petroleum, and Hindustan Petroleum align the prices of domestic fuel with global benchmarks by taking into account alterations in the foreign exchange rates.
Across the country as well the pump price of petrol and diesel increased on Wednesday but the quantum varied depending on the prevailing tax structure in each state.
Excise duty totals Rs 32.98 per litre in petrol and Rs 31.83 in diesel.
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