Fuel prices were hiked sharply on Wednesday as international crude oil prices continue to rise after the recent announcement by OPEC+. Petrol and diesel rates across the country have been hiked for the second straight day by 30 paise and 35 paise respectively.

Petrol price increased by 30 paise to Rs 102.94 per litre in Delhi and Rs 108.96 per litre in Mumbai after the fresh hike. It went up to Rs 103.65 per litre in Kolkata and Rs 100.49 per litre in Chennai.

Recap | Check Tuesday’s fuel prices

There are multiple new cities where petrol price crossed Rs 100 per litre after the fresh hike including Noida in Uttar Pradesh. There are at least 14 major cities where petrol price has crossed the three-figure mark. The highest retail price of petrol is Rs 114.20 in Rajasthan’s Sri Ganganagar.

Diesel rates across the country have also jumped sharply over the past few days. It costs Rs 91.42 per litre in the national capital and over Rs 99 per litre in Mumbai after today’s hike. It is retailing at Rs 94.53 per litre in Kolkata and Rs 95.93 per litre in Chennai. There are some major cities where it has crossed Rs 100 per litre.

Soaring fuel prices during the festive season could disrupt consumer demand as companies will be forced to hike prices of essential and non-essential goods across several categories.

The overall rise in inflation due to rising energy prices could also force the Reserve Bank of India (RBI) to move away from its low interest rate regime that has helped the economy recover after being battered by the pandemic earlier this year.

State-run oil manufacturing companies have been increasing domestic fuel prices due to a strong rally in global crude oil prices. Benchmark Brent crude oil is trading at over $82 per barrel. Experts suggest that anything above $75 per barrel will hurt India, which is one of the largest importers of crude oil in the world.

A recent Goldman Sachs report suggests that crude oil could cross $90 per barrel in December. In such a scenario, the fuel price burden on citizens would rise sharply. It will have a resounding impact on consumer sentiment and demand — both of which are key drivers of economic growth.

While the Centre and state governments have been against reducing taxes levied on petrol and diesel, the rapid increase in crude oil prices may leave them with no choice as the entire economy will be impacted by inflation.

Petrol and diesel prices in major Indian cities