Petrol, Diesel Prices Hiked Further As Crude Oil Rates Go Up
Petrol and diesel prices were hiked marginally on Tuesday, amid global crude oil rates soaring to a new four-hear high. While the petrol rates were increased by 14 paise per litre across Delhi, Mumbai Kolkata and Chennai compared to the previous day's prices, the rise in diesel prices was to the tune of 10-11 paise per litre. A litre of petrol cost the consumer Rs 82.86 litre in Delhi, Rs 84.68 in Kolkata, Rs 90.22 in Mumbai and Rs 86.13 in Chennai with effect from 6 am on September 25, according to Indian Oil Corporation. Diesel prices were at Rs 74.12 per litre, Rs 75.97 per litre, Rs 78.69 per litre and Rs 78.36 per litre respectively.
Here are five things to know:
1. The latest hike in domestic fuel prices comes on the back of the recent jump in crude oil prices, and prevailing weakness in the rupee against the US dollar. Tuesday's action on rates marks a sixth consecutive increase in the price of petrol, and second in case of diesel.
2. Brent crude - the international benchmark for crude oil - touched $82.20 a barrel on Tuesday, the highest since November 2014. The crude oil price was on course for its fifth consecutive quarterly increase, the longest stretch of gains since early 2007, when a six-quarter run led to a record high of $147.50 a barrel.
(Also read: 10 reasons behind spike in crude oil price)
3. The rupee declined to its record lows against the US dollar, before settling marginally lower at 72.69 for the day.
4. At this level, the rupee is down nearly 14 per cent against the greenback so far this year, cementing its position as the worst performing major Asian currency.
5. High crude oil prices and rupee depreciation make crude oil more expensive for importers, who have to make payment in dollars, leading to widening of trade deficit.
(With agency inputs)
