New Delhi: As the rupee has declined nearly 1% this year while crude oil has gained 11%, the prices of petrol and diesel have jumped by 42 paise and 15 paise, respectively. Following today’s hike of 19 paise, a litre of petrol costs ₹ 69.07 in New Delhi, ₹ 71.34 in Bengaluru, ₹ 74.72 in Mumbai, ₹ 71.67 in Chennai and ₹ 71.20 in Kolkata.
Diesel, the price of which was hiked by 28 paise, now costs ₹ 62.81 in New Delhi, ₹ 64.87 in Bengaluru, ₹ 65.73 in Mumbai, ₹ 66.31 in Chennai and ₹ 64.58 in Kolkata. Fuel prices in India are directly affected by any change in the value of rupee against the US dollar and the price of crude oil.
The rupee, which was trading above 70 a dollar during the day, has lost about 1% versus the dollar this year after posting the best quarterly gain since March 2017. A Bloomberg survey of analysts forecasts a drop to 71.20 per dollar by March 31.
Oil prices, on the other hand, were on track for solid weekly gains today riding on hopes that the US and China may soon resolve their trade disputes, and as OPEC-led output cuts started to tighten supply.
Fears of an economic slowdown in 2019 could, however, keep oil prices in check.
Brent crude futures were trading close to $62 per barrel. Both Brent and WTI are set for their second week of gains, rising nearly 8% and 10% respectively.