State-run oil marketing companies hiked fuel prices sharply on Thursday even as global crude oil rates declined for the second consecutive day. Petrol and diesel rates across the country have been hiked by 25 paise and 30 paise, respectively.

Petrol costs Rs 101.64 per litre in Delhi and Rs 107.71 per litre in Mumbai. Petrol is retailing at Rs 102.17 per litre in Kolkata and Rs 99.46 per litre in Chennai. There are several cities where petrol price remains above the three-figure mark.

On the other hand, the cost of diesel has gone up to Rs 89.87 per litre in the national capital and Rs 97.52 per litre in Mumbai. It is retailing at almost Rs 93 per litre in Kolkata and Rs 94.55 per litre in Chennai.

Global crude oil prices fell for the third straight session as US inventories saw a surprise rise, despite OPEC’s plan to maintain its deliberate approach to adding to supply.

However, the situation still remains volatile and a spike in demand due to the ongoing energy crisis in some parts of the world could lead to a jump in prices.

If crude oil prices rise sharply, domestic fuel prices will rise substantially in India as taxes levied on petrol and diesel are already high. This could trigger a period of high inflation and higher commodity prices. The recovery momentum could be severely impacted as a result.

Despite the setbacks of high fuel prices, the government has made it clear that a tax reduction on petrol and diesel will not be possible in the near term. In such a scenario, petrol and diesel prices could increase further if there is no reduction in global crude oil prices.

Petrol and Diesel prices in major Indian cities: