Petrol, diesel prices rise up to 31 paise per litre on Middle East tensions, records highest jump in 2019 so far

Fuel prices touched nearly one-year peak in the country on Monday after petrol, diesel rates rose to 31 paise and 21 paise respectively in all major cities amid a surge in  crude prices which jumped 1 percent on concerns over Middle East tensions.

Petrol crossed Rs 81 per litre in some districts of Maharashtra on Monday following the constant rise in fuel prices in the past one week.

Petrol and diesel prices jumped up to Rs 1.90 a litre and diesel Rs 1.52 after the multiple drones strikes on Saudi Arabian oil facilities on 14 September. After the attack, about 5 percent of the global crude output was shut causing the biggest-ever surge in oil prices since 1991.

On 16 September, the attacks sent oil prices sky-rocketing, with Brent futures up $12 — or nearly 20 percent — in the first few minutes of business, while West Texas Intermediate (WTI) jumped more than $8, or 15 percent.

In Delhi today (23 September), petrol was retailing at Rs 73.91 per litre, Mumbai Rs Rs 79.57, Kolkata Rs 76.60 and in Chennai petrol was retailing at Rs 76.83 per litre, according to the data available on Indian Oil Corporation (IOC) website. Diesel was selling at Rs 66.93 a litre in Delhi,  Rs 70.22 in Mumbai,  Rs 69.35 in Kolkata and Rs 70.76 per litre in Chennai .

Representational image. Reuters.

On Monday, Parbhani in Maharashtra recorded the highest petrol price at 81.51 per litre followed by Nanded at Rs 81.38 and Amravati at Rs 80.81 per litre in Maharashtra.

In Parbhani, diesel was retailing close to Rs 80 per litre at 70.99 a litre while it was Rs 70.89 in Nanded and 71.48 in Amravati, according to the data available on the IOC website.

The last recorded hike in fuel prices across the four metros was on 4 October 2018 in Mumbai at Rs 91.34 per litre for petrol and Rs 80.10 for of diesel. The prime causes of the surge in fuel price were due to weak rupee and rise in crude prices.

Crude prices peak

Crude oil prices rose more than 1 percent on Monday on doubts over how fast Saudi Arabia can bring back its full crude output after an attack earlier this month on its largest processing facility. Tensions in the Middle East remained at high levels, reported Reuters.

Brent crude futures increased to as much as $65.50 a barrel. The front-month contract was at $64.98, up 70 cents, or 1.09 percent.

US West Texas Intermediate (WTI) crude futures were at $58.71 a barrel, up 62 cents, or 1.07 percent, after earlier hitting a high of $59.39.

Despite efforts by top oil exporter Saudi Arabia to reassure global markets, it can resume full production by the end of this month after an attack on its largest oil processing facility in mid-September, buyers and traders remained sceptical. The attack knocked out half of the kingdom’s oil production.

Tensions in the Middle East have escalated since the attack, and the Pentagon has ordered additional U.S. troops to be deployed in the Gulf region to strengthen Saudi Arabia’s air and missile defence.

US Secretary of State Mike Pompeo said on Sunday the troops are for “deterrence and defense” and that Washington aimed to avoid war with Iran.

India depends on Saudi Arabia for a fifth of its oil imports and has been in constant touch with Kingdom officials on securing its supplies.

Oil Minister Dharmendra Pradhan on Thursday spoke to Saudi Arabia's new oil minister Prince Abdulaziz bin Salman to discuss the supply plan. Saudi Arabia, according to Pradhan, has assured India of meeting all its committed oil supplies, reported PTI.

Saudi Arabia, which is India's second-largest oil supplier, sells close to 2 million tonnes of crude every month. Of this, 1.2-1.3 million tonnes of supplies for September have already been taken and the rest too has been assured.

— With inputs from agencies