Petrol and Diesel Prices May Hike in India Because of a Price Hike in the International Market

Petrol and diesel prices in four metro states remained unchanged. According to the Indian Oil Corporation, the petrol price in the capital remained steady at Rupees 101.19 and diesel rates have also been unchanged at RS. 88.62 per litre. Mumbai petrol prices are the highest in the country, according to the state-run oil refinery.

The fuel rates vary in states due to value-added tax or VATS. Meanwhile, a price hike in international markets may push up the retail selling price of petrol and diesel in India because oil companies are facing an extreme margin squeeze, PTI sources said. In the international market, the price of gasoline and diesel has risen by around USD 4-6 per barrel since August's average. However, these prices have not yet affected oil companies-Source Said. If international prices remain the same, then oil marketing companies will have to increase oil retail prices. Prices of petrol and diesel were last increased on July 15th and July 17th, respectively. Before that, the petrol price was increased by Rs 11.44 per litre between May 14 and July 1. The diesel price had risen by Rs 9.14, and the price increase had pushed the price of petrol above Rs 100 per litre in half of the states. While diesel crossed this level in three states.

Petrol and diesel prices in major cities today
City        Petrol          Diesel
Delhi     101.19          88.62
Mumbai    107.26    96.19
Chennai    98.96    93.26
Kolkata    101.62    91.71
Bengaluru 104.70   94.04
Patna        103.79    94.55
Bhopal   109.63   97.43
Lucknow 98.30   89.02
Ranchi    96.21     93.57
Chandigarh 97.40  88.35
Bhopal    109.63    97.43
Lucknow 98.30   89.02
Ranchi     96.21      93.57
Chandigarh 97.40  88.35

International crude oil prices fell by more than $3 per barrel in August compared to the previous month. This happened because of the backdrop of the USA and China’s mixed economic data and due to the fast-spreading delta variant. Accordingly, in the capital, the retail prices of petrol and diesel were reduced by ₹0.65 a litre and ₹1.25 a litre from July 18 onwards. However, the latest development in the international market has hiked the price of crude oil consistently since the last week of August.