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Global crude prices push petrol prices in national capital to over 3-year high

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(G.N.S) Dt. 23

New Delhi

A rally in global crude oil prices pushed petrol prices in the national capital to an over three-year high level on Tuesday. Petrol prices rose to the over three-year high level of Rs. 72.23 per litre on Tuesday from Monday’s Rs. 72.08 per litre.

According to data from IndianOil, the previous high for petrol prices in Delhi was Rs. 72.51 a litre reported on July 1, 2014.

In the other key metro cities of Mumbai and Kolkata and Chennai, petrol was priced at Rs. 80.10 per litre, Rs. 74.94 and Rs. 74.91 respectively.

The previous highs in Mumbai and Kolkata and Chennai were Rs. 80.60 (August 2014), Rs. 75.46 (October 2014) and Rs. 74.91 (August 2014) respectively.

Similarly, there was an appreciation in diesel prices throughout metro cities. On Tuesday, prices of diesel in Delhi, Kolkata and Chennai touched record highs of Rs. 63.01 per litre, 65.67 and Rs. 66.44 respectively.

In Mumbai, diesel was sold at Rs. 67.10 per litre — the highest level since August 2014 when it was priced at Rs. 67.26 a litre.

The rise in diesel prices across several metros assumes significance as the fuel is the mainstay of the transportation sector and will have a consequent upward effect on inflation.

Several factors like production curbs by the Organization of the Petroleum Exporting Countries and high demand have led to a surge in crude oil prices to a three-year high. As on January 23, Brent crude oil prices hovered around $70 a barrel.

Besides global factors, daily price revision allows for a sudden rise in domestic fuel prices which reflects international trends. The earlier system of price determination of petrol had a waiting period of 15 days.

On the other hand, imposition of various state taxes and levies generally hikes prices. Currently, the two transportation fuels do not come under the ambit of the Goods and Services Tax (GST) regime.

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