Petrol, diesel price hike pauses after soaring for seven days at a stretch

Prices of petrol and diesel did not see any rise on Tuesday, bringing a breather to consumers in the country.The relief came after seven days of continuous hike in prices of motor fuels by oil marketing companies. The retail rates of petrol and diesel have reached record heights in the country in the past one month.

Petrol in the national capital continues to be sold at ₹104.44 for each litre while diesel continues to retail at ₹93.17 per litre, the same prices as that on Monday. The country's financial capital Mumbai continues to sell petrol at a per litre price of ₹110.41 while diesel is being sold at ₹101.03 for each litre.

The pause in fuel price hike rally came after a rise in motor fuel prices since last month with seven days of consistent rise until Monday. Price of petrol has risen on 12 of the last 14 days, increasing the retail price by ₹3.25 per litre. Price of diesel increased on 15 out of the past 18 days, taking up its retail price by ₹4.55 per litre in the national capital.

The latest motor fuel price hikes are a result of the increasing price of crude oil in the international market. With OPEC+ deciding not to increase the production of crude oil, the price of per barrel crude in the international market has increased by $82. Around one month back, the price of per barrel crude oil in the international market was $72. This large proportional fuel rate hike has impacted domestic motor fuel prices.

Around 85 per cent of the total fuel demand in India is met with imports from overseas countries. Thus, changes in the international crude oil market affects the domestic fuel costs in the country.