Petrol, diesel prices may go up soon as crude oil rates jump by 10% in a week

The price of petrol and diesel, which had become costlier in Delhi than Noida and Gurgaon (Gurugram) in the last few months, is now again relatively cheaper in the national capital. Photo: Mint

New Delhi: With the benchmark Brent crude oil showing signs of recovering from a bearish market in the short term, petrol and diesel prices may go up once again this week. In the last seven days, Brent has jumped by about 10% while fuel rates in India have gone down. State-run oil marketing companies did not changed the retail price of petrol and diesel in India for the third consecutive day today. A litre of petrol today costs Rs 68.50 in Delhi, Rs 74.16 in Mumbai, Rs 70.74 in Bangalore, Rs 71.07 in Chennai, Rs 72.67 in Hyderabad and Rs 70.64 in Kolkata.

Diesel, which has fallen more sharply than petrol so far this year, is priced at Rs 62.24 a litre in Delhi, Rs 65.12 in Mumbai, Rs 64.28 in Bangalore, Rs 65.70 in Chennai, Rs 67.66 in Hyderabad and Rs 64.01 in Kolkata.

The price of petrol and diesel, which had become costlier in Delhi than Noida and Gurgaon (Gurugram) in the last few months, is now again relatively cheaper in the national capital. The Delhi government taxes petrol and diesel at an ad valorem rate while the Uttar Pradesh and Haryana governments follows a fixed sales tax structure, leading to the difference in prices.

Read: Petrol is now cheaper than diesel in these cities

If the last three months are taken into account, then the rate of petrol is down by more than Rs 13 and diesel by more than Rs 11per litre. During the corresponding period, crude oil has slumped sharply by 30%.

Yesterday, the oil market had closed at a three-week high as US negotiators touted progress in trade talks with China and investors gained faith that Organisation of Petroleum Exporting Countries (OPEC), Russia and other allies will restrain production enough to avoid an oversupply.

Both crude price benchmarks, WTI and Brent, had already gained more than 2% in the previous session. Brent crude oil, which was close to $50 a barrel last month, is now touching the $60 mark.