Petrol and diesel prices were hiked across major cities in the country on Monday.
The change in the price of crude oil in the international market directly influences the price of crude oil in the domestic market; this is one of the most important factors responsible for an increase in petrol prices in Indian domestic market. Increase in international demand, low production rate and any political unrest in the crude oil-producing countries of the world severely affect petrol price.
Petrol prices were hiked by 5-7 paise across four major metros while diesel prices were hiked 5-6 paise.
Petrol price hiked by 5-7 paise & diesel price increased by 5-6 paise across 4 major cities pic.twitter.com/cnyVyOirnL
— CNBC-TV18 (@CNBCTV18Live) September 12, 2019
Petrol was available at Rs 71.82 per litre in Delhi against Rs 71.76 on Wednesday, Rs 74.55 (Rs 74.49) in Kolkata, Rs 77.50 (Rs 77.45) in Mumbai and Rs 74.63 against Rs 74.56 in Chennai.
Diesel prices across four metro cities were up. In Delhi, after yesterday's rate revision, diesel prices were up at Rs 65.19 against Rs 65.14 a litre on Wednesday while in Mumbai it was Rs 68.37 (Rs 67.15), in Kolkata Rs 67.60 and in Chennai 68.90 against Rs 68.84 per litre.
The retail fuel prices are the cheapest in Delhi among all metros and most state capitals due to lower taxes.
Meanwhile, crude oil prices traded higher on Wednesday after an industry report said US crude stockpiles fell last week by more than twice the amount that analysts in a Reuters poll had forecast.
Brent crude futures rose 40 cents, or 0.6 per cent, to $62.78 a barrel, while West Texas Intermediate (WTI) futures were up 37 cents, or 0.6 per cent, to $57.77 a barrel.
The American Petroleum Institute (API) numbers showed that US crude inventories down by 7.2 million barrels in the week ended Sept. 6 to 421.9 million, compared with analysts' expectations in a Reuters poll of a decrease of 2.7 million barrels.
Prices had ended lower on Tuesday, squeezed by speculation of sanctions-hit Iranian crude returning to the market following US President Donald Trump's move to fire national security adviser John Bolton, a noted Iran policy hawk.
As per the country’s daily pricing mechanism, the pump price of petrol and diesel is dependent on the global crude prices and the rupee-US dollar exchange rate as India imports 80 per cent of its crude requirements.
In India, petrol prices are revised by the oil marketing companies like Indian Oil, Bharat Petroleum and Hindustan Petroleum based on international prices. So, when international crude oil prices gain, petrol prices in India move higher. On the other hand, if crude oil prices in the international markets drop, there is a fall in daily petrol prices in India.
Updated Date: Sep 12, 2019 10:38:50 IST