Fuel rates hit record as global oil prices near a three-year high

Fuel on Friday reached its highest price ever across the country as the cost of global oil was near a three-year high, NDTV reported.

In Delhi, petrol rates have been increased by 25 paise from Rs 101.64 to Rs 101.89 per litre. Diesel has become costlier by 30 paise from Rs 89.87 per litre to Rs 90.17 per litre, according to Indian Oil Corporation.

In Mumbai, a litre of petrol now costs Rs 107.95. Diesel rates stood at Rs 97.84 per litre. The cost of fuel in Mumbai is currently the highest among all metros, according to NDTV.

The price of petrol in Chennai was Rs 99.58, while diesel cost Rs 94.74. In Kolkata, diesel is priced at Rs 93.27 and petrol costs Rs 102.47.

This was the third price increase of petrol and the sixth of diesel since state-owned oil firms ended a three-week hiatus in rate revision on September 24, reported PTI.

This has pushed the rate of petrol over Rs 100 in six cities. In Rajashtan’s Sri Ganganagar, which has the costliest fuel in the country, the price of petrol climbed to Rs 113.73 a litre and diesel to Rs 103.9 per litre.

The hike in fuel rates was triggered by an increase in price of crude oil. A barrel is selling at $78.64 (approximately Rs 5,841) on the Brent benchmark.

Brent is a global price benchmark for the crude oils from the Atlantic basin. It is used to set the price of two-thirds of the world’s crude oil trade supplies.

India depends on imports to meet 85% of its oil needs. Thus, a rise in international oil prices directly influences national fuel rates

When international oil rates had fallen in July and August, petrol prices in Delhi were reduced by Rs 0.65 and diesel prices by Rs 1.25 per litre.

Between May and July, the price of petrol increased by Rs 11.44 a litre and diesel by Rs 9.14. In this period, the crude oil prices steadily escalated from $65.15 on May 4 to $75.39 on July 13.