Prices of petrol and diesel touched new highs after the oil marketing companies again raised the rates on Wednesday. In the national capital, petrol and diesel prices were raised by 25 paise per litre each taking the rates to Rs 86.30 a litre and Rs 76.4 per litre respectively.
This is the maximum increase in fuel prices in the last one year.
Similar trends of rise in fuel prices were witnessed across the nation. In Mumbai, petrol prices were raised by 24 paise per litre, taking the rates to Rs 92.86, while diesel rates were raised by 27 paise a litre to Rs 83.30.
This latest hike took the petrol prices in Chennai and Kolkata to Rs 88.82 and Rs 87.69 respectively.
Similarly, diesel rates climbed to Rs 81.71 in Chennai and Rs 80.08 in Kolkata, price data showed.
Diesel rates in Chennai were increased by Rs 1.85.
Fuel prices, which vary from state to state depending on local sales tax or VAT, are now at a record high in the country, prompting cries for a cut in excise duty to ease the burden on consumers.
State-owned fuel retailers: Indian Oil Corporation Ltd (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL), had on January 6, resumed daily price revision after nearly a month-long hiatus.
This comes after international oil prices firmed up in hopes of demand returning from the rollout of coronavirus vaccines in different countries, including India.
Last week, Oil Minister Dharmendra Pradhan blamed Saudi oil output cut for the surge in oil prices but remained non-committal on tax cuts.
Top oil explorer Saudi Arabia has pledged additional voluntary output cuts of 1 million barrels per day in February and March, which has led to price climbing to most since the pandemic broke out.
Meanwhile, reports suggest that the latest hike in fuel prices is the result of unexpected low number of US crude stockpile. In addition to this, China also posted lowest daily rise in COVID-19 cases, bolstering hopes of rise in demand.
Petrol and diesel prices are revised on a daily basis in line with benchmark international price and foreign exchange rates.
Brent crude futures jumped 11 cents to settle at $56.02 a barrel while the WTI crude ended 10 cents higher at $52.71 a barrel.