Mumbai has become the first metro city in India to see diesel prices cross the Rs 100 per litre mark after fuel prices touched new record highs on Saturday as rates were hiked for the fifth straight day.
In New Delhi, petrol prices were hiked by 30 paise from Rs 103.54 per litre to Rs 103.84 per litre, while diesel rates were hiked by 35 paise from Rs 90.12 to Rs 90.47, according to Indian Oil Corporation.
In Mumbai, diesel costs Rs 100.29 a litre while the price of petrol rose to Rs 109.83 per litre. Prices vary a bit from state to state depending on the value added tax. For the previous four days, the price of petrol has been hiked by 30 paise a litre and diesel by 35 paise.
Being a net importer of oil, India prices petrol and diesel at rates equivalent to international prices. State-run oil refiners such as Indian Oil, Bharat Petroleum, and Hindustan Petroleum revise the fuel rates daily, going by crude oil prices in international markets and the rupee-dollar exchange rate. Since Wednesday, state-owned fuel retailers have started passing on the larger incidence of cost to consumers.
International benchmark Brent crude has soared to over $82 per barrel after the decision by OPEC+ not to increase supply more than 0.4 million barrels per day, fuel rates are being increased by a larger proportion. Brent was around $72 per barrel a month ago.
The surge in international oil prices ended a three-week hiatus in rates on September 28 for petrol and September 24 for diesel. Since then, diesel rates have surged by Rs 3.85 paise per litre and petrol price has risen by Rs 2.65.