Fuel prices were hiked sharply on Tuesday as global crude oil prices continue to surge. Petrol price has been increased by 19-25 paise, while diesel rates have gone up by 24-27 paise.

Petrol price has gone up by 20 paise in Delhi to Rs 101.39 per litre and by 21 paise in Mumbai to Rs 107.47 per litre. In Kolkata, petrol is retailing at Rs 101.87 per litre, up 25 paise from yesterday’s price, and it costs Rs 99.15 per litre in Chennai.

On the other hand, diesel price has jumped to Rs 89.57 per litre in the national capital, an increase of 25 paise from yesterday. The price in Mumbai has gone crossed Rs 97 per litre after an increase of 27 paise. It costs Rs 92.67 per litre in Kolkata and Rs 94.17 per litre in Chennai.

The sharp hike in domestic fuel prices comes after global crude oil rallied for the sixth consecutive day as supply concerns remain. Benchmark Brent crude oil has hit a three-year-high, surpassing $80 per barrel.

The International Energy Agency (IEA) and OPEC had confirmed earlier that global demand is likely to outpace supply in the near to medium term. This means global crude oil prices could rise further in the near future and have a direct impact on domestic prices.

This is not a good development for citizens in India as state-run oil companies may have no choice but to start hiking rates in the near future. Fuel prices are already retailing at elevated rates across the country due to high taxes levied by the Centre and state governments.

Petrol and Diesel prices in major Indian cities: