State-run oil marketing companies (OMCs) have again increased domestic fuel prices on Friday as international crude oil prices remain high. This is the second straight hike this week, following a pause on Tuesday
Petrol and diesel prices have been hiked by 25 paise and 30 paise, respectively. Fuel prices climbed to a fresh all-time high today after OMCs resumed increasing petrol and diesel prices earlier this month.
Petrol is retailing at Rs 101.89 in Delhi and nearly Rs 108 per litre in Mumbai. It costs Rs 102.47 per litre in Kolkata and Rs 99.58 per litre in Chennai. The number of cities where petrol price remains over Rs 100 per litre has also increased after the fresh round of hikes.
On the other hand, diesel prices in the national capital crossed Rs 90 per litre for the first time, and it is one hike away from breaching Rs 98 per litre in Mumbai. Diesel costs Rs 93.27 per litre in Kolkata and Rs 94.74 per litre in Chennai.
A sharp rally in crude oil prices over the past few weeks has forced state-run oil companies to increase petrol and diesel prices. While crude oil prices have been falling for the past two days, a Goldman Sachs report suggested that it may cost $90 per barrel by December.
For India, the development is alarming as it is one of the largest oil importers in the world and higher crude oil prices would lead to a sharp rise in petroleum products.
Experts have raised concern over high fuel prices that have already forced many companies to increase the prices of their goods. This is because higher fuel prices directly impact the input cost that goes into manufacturing or delivering a product.
The fact that fuel prices are going up during the all-important third quarter, which sees high demand, could reduce the pace of economic recovery significantly as consumer sentiment would be hit.
Despite the concerns, the Centre and state governments have made it clear that there will be no reduction in taxes levied on fuel. It may be noted that India levies one of the highest taxes on fuel in the world.
If fuel prices keep rising further, it will lead to a sharp rise in inflation and directly affect consumer demand, which is one of the most important drivers of economic growth.
Petrol and Diesel prices in major Indian cities:
|CITY||PETROL (PER LITRE)||DIESEL (PER LITRE)|
|NEW DELHI||Rs. 101.89||Rs. 90.17|
|MUMBAI||Rs. 107.95||Rs. 97.84|
|CHENNAI||Rs. 99.58||Rs. 94.74|
|KOLKATA||Rs. 102.47||Rs. 93.27|
|BENGALURU||Rs. 105.44||Rs. 95.70|
|PATNA||Rs. 104.83||Rs. 96.57|