NEW DELHI: One litre of petrol breached the Rs 110-mark on Tuesday in the national capital while the same was sold at Rs 115.85 in Mumbai. In a more troublesome news for consumers, especially during the on-going festive season, fuel prices are showing no signs of slowing down after becoming dearer by around Rs 7.50-8.00 a litre in October alone.
The rate of 1 litre of petrol was hiked by 35 paise on Tuesday, though the price of diesel remained unchanged. With this fresh hike, seventh in a row, petrol prices in Delhi was at a record high of Rs 110.04 per litre on Tuesday, while diesel was sold at Rs 98.42 per litre.
Among the four metros, fuel prices are the highest in the financial capital Mumbai, with 1 litre of petrol and diesel costing Rs 115.85 and Rs 106.62, respectively. In Chennai, petrol is at Rs 106.66 per litre, while diesel is available at Rs 102.59. In Kolkata, petrol and diesel are retailing at Rs 110.49 and Rs 101.56 per litre, respectively.
In Ganganagar (Rajasthan), where fuel rates are highest in the country, a litre of petrol and diesel are available at Rs 122.70 and Rs 113.21, in respectively. In October 2021, fuel prices were hiked on 24 days out of 31 days. By including Tuesday’s figures, petrol has become costlier by Rs 8.20 a litre in 26 days, while diesel by Rs 8.65 per litre. Factors that have led to the steep rise include the rise in international prices. Crude prices are higher by $9-10 a barrel since August 2021 due to lower supply and high demand.
However, it is the high taxes, which account for almost half the price of fuel, which is really pinching the consumers. Taxes currently make up more than 53% of petrol prices and over 47% of that of diesel (in Delhi). The WTI (West Texas Intermediate) Crude Oil market rallied in last few days, and is hovering around $85 level.
“The $85 level has recently provided significant resistance. If we can break above that level, the market will most likely head for the $90 level, which is my longer-term thesis,” says Kshitij Purohit, Lead Commodities and Currency at CapitalVia Global Research.
Harees V, Head of Commodity at Geojit Financial Services, meanwhile, feels that there are chances of a correction in the immediate run. Easing global energy crisis and an increased US shale oil production likely to cool down prices. Also, a rise in production from the OPEC expected to limit major rallies in prices, says Harees.
Trail of price hikes to continue