Diesel Prices Hit Record Highs As Fuel Price Hikes Continue

Diesel prices hit record levels in select locations across the country on Monday. Oil marketing companies such as Indian Oil Corporation increased the fuel prices marginally across Delhi, Kolkata Mumbai and Chennai, among other cities. With effect from 6 am on Monday, diesel prices were at Rs 69.46 per litre in Delhi. Rs. 73.74 per litre in Mumbai, Rs. 72.31 per litre in Kolkata and Rs. 73.38 per litre in Chennai, according to Indian Oil Corporation, the country's largest fuel retailer. That marked the highest level of diesel prices in Delhi, Kolkata and Chennai, according to data from Indian Oil Corporation.

Petrol prices were at Rs. 77.91 per litre in Delhi, Rs. 85.33 per litre in Mumbai, Rs.80.84 per litre in Kolkata and Rs. 80.94 per litre in Chennai, according to Indian Oil Corporation. The Centre currently levies a total of Rs. 19.48 per litre of excise duty on petrol and Rs. 15.33 per litre on diesel. 

Domestic petrol and diesel prices are broadly determined by global crude oil and rupee-dollar exchange rate.

In the international market, Brent oil prices rose to near $76 a barrel, as a committee monitoring a deal on oil output curbs between OPEC (Organization of the Petroleum Exporting Countries) and non-OPEC producers saw production rising while a U.S.-China trade dispute capped gains. 

Members of the OPEC and non-OPEC monitoring committee found producers in a supply-reduction agreement cut their July output by 9 per cent more than called for in their pact, news agency Reuters cited two sources familiar with the matter as saying. OPEC members and other producers led by Russia agreed in June to return to 100 per cent compliance with oil output cuts that began in January 2017.

Meanwhile, the rupee plunged to an all-time closing low of 70.16 against the US dollar. The currency had last logged an all-time closing low less than two weeks ago.

State-owned oil firms had in mid-June last year dumped 15-year practice of revising rates on 1st and 16th of every month in favour of daily price revisions. Since then, sate-run oil marketing companies Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation have been reviewing fuel prices on a daily basis. Any revisions are implemented at fuel stations with effect from 6 am every day.

(With agencies inputs)