The fuel prices increased again on Thursday, 8 July after they were hiked on 7 July. With the 37th increase since 4 May, fuel has crossed record prices in most cities. As reported by CNBC TV18, petrol prices were increased by up to 35 paise while diesel rate also increased by up to 9 paise on 8 July.
The hike on Thursday is the 37th increase in the price of petrol since 4 May, when state-owned oil firms ended an 18-day hiatus in rate revision they observed during assembly elections in states like West Bengal.
Fuel prices are increased by the oil marketing companies. The state-run companies are Bharat Petroleum (BPCL), and Hindustan Petroleum (HPCL) and Indian Oil (IOC). The modified prices are implemented from 6 am everyday.
The updated prices differ in different cities and states because of the local and freight charges which vary across cities.
In Delhi, petrol today costs Rs 100.56 per litre while diesel is being sold at Rs 89.62. While the price of petrol in all major cities like Mumbai, Chennai and Bengaluru crossed the Rs 100 mark days ago, Delhi reached it on Wednesday. Petrol is priced at Rs 106.59 a litre in Mumbai while can be purchased in the city for Rs 97.18 per litre.
A litre of petrol costs Rs 101.37 in Chennai. Diesel can be bought for Rs 94.15 a litre in the same city.
In Kolkata as well, petrol is over the 100-mark and costs Rs 100.62. On the other hand, diesel is priced at Rs 92.65 per litre.
Petrol is now at Rs 108.88 in Bhopal while diesel can be purchased for Rs Rs 98.40 in the city. In Srinagar, the prices of petrol and diesel are Rs 103.44 per litre and Rs 93.24 per litre, respectively.
Brent crude oil had surged to USD 78 per barrel as OPEC+ proposal for a monthly output hike of 400,000 barrels per day from next month has been put on hold and lifting of US sanctions on Iran's exports no longer appears imminent.
OPEC+ led by Saudi Arabia linking output hike to extending OPEC+ deal up to December 2022, without any revision in production baselines demanded by the United Arab Emirates (UAE) has led to a stalemate.
The International Energy Agency (IEA) estimates global oil demand to recover to a pre-COVID level of 100.6 million barrels per day only in the fourth quarter of the 2022 calendar year, while OPEC+ proposal is to unwind production cuts fully by September 2022.
The rally in international oil prices has reflected in rising retail prices in India, which is 85 per cent dependent on imports to meet its oil needs.
Fuel prices differ from state to state depending on the incidence of local taxes such as value-added tax (VAT) and freight charges.