State-run oil marketing companies (OMCs) have hiked fuel prices for the second straight day as global crude oil rates gain momentum.

Petrol and diesel rates across the country were increased by 35 paise each. Both petrol and diesel are retailing at record high rates in the country and prices are expected to go up further in the near future.

A litre of petrol costs Rs 106.54 per litre in Delhi and over Rs 112 per litre in Mumbai. It costs over Rs 107 per litre in Kolkata after the fresh hike and nearly Rs 104 per litre in Chennai.

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In most other cities and towns, petrol is retailing above the three-figure mark, with the highest rate in Rajasthan’s Sri Ganganagar at Rs 118.22 per litre.

Meanwhile, diesel has crossed Rs 95 per litre in the national capital and Rs 103 per litre in Mumbai. It costs over Rs 98 per litre in Kolkata and nearly Rs 100 per litre in Chennai.

Diesel rates have crossed Rs 100 per litre in multiple cities, including Bengaluru, Bhubaneswar, Hyderabad, Jaipur, Patna and more.

The sharp rise in fuel prices could severely hurt economic growth, given its cascading impact on other essential and non-essential commodities.

Therefore, higher fuel prices will lead to soaring inflation and dent consumer demand, which is a key requirement for healthy economic recovery.

However, fuel prices are unlikely to come down soon as the government has no plans to cut taxes levied on petrol and diesel. It may be noted that taxes on petroleum products are one of the highest in the world in India.

The plan to include petroleum products under GST has also faced opposition from states. In such a scenario, fuel prices could rise further as OMCs will have no choice but to hike rates in line with international crude oil prices.

Petrol and Diesel rates in major Indian cities: