A litre of petrol costs  ₹73.06 a litre in Delhi,  ₹78.73 a litre in Mumbai,  ₹75.56 in Bengaluru and  ₹75.93 in Chennai. (Ramesh Pathania/Mint)
A litre of petrol costs 73.06 a litre in Delhi, 78.73 a litre in Mumbai, 75.56 in Bengaluru and 75.93 in Chennai. (Ramesh Pathania/Mint)

Petrol price shot up by Re 1 this week. 5 things to know about petrol, diesel price hike

  • Looking at the oil price trend in global markets, it is likely that fuel prices will continue to rise in India
  • If the last five days of this week are taken together, petrol price has jumped by Re 1.03 while that of diesel by 86 paise

NEW DELHI : In the biggest single-day increase during the last two months, the price of petrol rose up by 35 paise and that of diesel by 28 paise. If the last five days of this week are taken together, petrol price has jumped by Re 1.03 while that of diesel by 86 paise.

A litre of petrol costs 73.06 a litre in Delhi, 78.73 a litre in Mumbai, 75.56 in Bengaluru and 75.93 in Chennai. Diesel, on the other hand, is priced at 66.29 per litre in Delhi, 69.54 in Mumbai, 68.55 in Bengaluru and 70.07 in Chennai.

5 things to know about petrol, diesel prices:

1) The price of petrol and diesel in India is directly related to its international benchmark rates, which in turn gets affected due to any change in crude oil rates. While fixing the price of petrol and diesel, state-run fuel retailers take into account a 15-day average of international benchmark rates.

2) Crude oil rates saw one of its biggest single-day jump in recent times on Monday after drone attacks on Saudi Arabia's oil facilities destroyed about 5% of the world's oil supplies. Oil rates have fallen now since Monday but the impact of the attack can still be felt in the market. In the last 7 days, crude oil rates have gone up by around 6%.

3) Another factor which critically affects fuel prices is the exchange rate of rupee against the US dollar. The rupee is down about 2% so far this year, weighed down by outflows Indian equity markets over the past few months. The rupee strengthened by 0.26% to 71.11 against the dollar today.

4) Due to a drop in VAT rates in Chandigarh, petrol and diesel has become cheaper in the union territory than in the neighbouring Punjab. Petrol price was higher by about 5 per litre in Mohali than that in Chandigarh, while diesel was expensive by about 3 per litre.

5) Looking at the oil price trend in global markets, it is likely that fuel prices will continue to rise in India during the next few days. This morning, Brent crude was on track to rise about 7.7% this week, the biggest weekly gain since January. The front-month November contract was at $64.96 a barrel, up 56 cents, by 0212 GMT.

Close