Petrol price increased by 19 to 25 paise per litre across India on September 28 as international oil prices have soared to a three-year high. This was the first increase in the fuel price after July 17, according to a price notification by state-run oil companies.
Diesel price also hiked by 24 to 27 paise per litre -- the fourth increase since last week.
Petrol price increased by 21 paise in Mumbai, which revised the retail price of the fuel to Rs 107.47 per litre on the day. Diesel price also increased by 27 paise and sold at Rs 97.21 per litre in Maharashtra’s capital.
In Delhi, fuel prices witnessed a similar trend. The petrol and diesel prices increased in the national capital by 20 and 25 paise, respectively. This revised the retail price of petrol to Rs 101.39 per litre and of diesel to Rs 89.57 per litre.
The petrol price increased in Kolkata too, where a litre of the fuel retailed at Rs 101.87, with an increase of 25 paise. Diesel price also witnessed a hike of 25 paise in West Bengal’s capital and retailed at Rs 92.67 per litre.
Chennai also saw an increase of 19 paise in petrol prices, which took its rate to Rs 99.15 per litre. Diesel price also revised to Rs 94.17 per litre in Tamil Nadu’s capital, up 24 paise from the previous day.
Crude oil prices have reached a nearly three-year high as global output disruptions have forced energy companies to draw more crude oil out of their stockpiles. Accordingly, US crude oil inventory levels are also nearing a three-year low.
"Global demand for crude oil has been increasing consistently with the easing of pandemic restrictions and improving vaccination rates. On the supply side, OPEC+ alliance has been slow in easing output restrictions, contributing to the tightened supply in the market," a source told news agency PTI.
Additionally, hurricanes Ida and Nicholas have impacted crude oil production in the US Gulf of Mexico region, when they hit in late August and September respectively.
As per both IEA and OPEC, global demand is expected to outpace supply due to which international oil prices will likely remain firm in the near to mid-term. A simultaneous rally in natural gas is also likely to drive demand for alternate fuels.
State-owned Indian Oil Corp (IOC), Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL) had on September 24 resumed daily price revisions, ending the pause in rates since September 5.
When international oil rates fell in July and August, retail prices of petrol and diesel in the Delhi market were reduced by Rs 0.65 and Rs 1.25 per litre. Prior to that, petrol price was increased by Rs 11.44 a litre between May 4 and July 17. Diesel rate had gone up by Rs 9.14 during this period. The price hike during this period pushed petrol prices above the Rs 100-a-litre mark in more than half of the country, while diesel crossed that level in at least three states.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
