Petrol touches new high of Rs 84.45 in Delhi, crosses Rs 91 mark in Mumbai
New Delhi: Petrol prices set a new record on Wednesday with prices rising to ?84.45 a litre in the Capital.
State oil companies raised prices of both petrol and diesel by 25 paise a litre on Wednesday. Diesel prices rose to ?74.63 a litre in Delhi. Petrol and diesel rates have risen to ?91.07 and ?81.34 per litre in Mumbai.
A combination of the surge in international oil prices and a steep domestic tax structure has lifted prices to record levels. Taxes comprise 62% and 58% of retail prices of petrol and diesel, respectively, in Delhi.
Crude oil prices have risen to $57 a barrel, the highest since February and up about 45% since the beginning of November as economies rebound and key producers keep supply in check.
Saudi Arabia’s surprise decision last week to cut its production by one million barrels a day has weighed on prices.
Many nations have rolled out Covid vaccine, bringing hope of faster economic recovery. But rising Covid death tolls in Europe and the US, and fresh containment measures imposed in many places are threatening to bring down demand and prices.
Indian oil firms are expected to daily revise rates of petrol and diesel to keep them in line with international rates. But they have avoided doing so in the past year, making it harder to predict domestic price trends.
The Economic Times 14-01-2021