New Delhi: Transportation fuel prices continued their upward trajectory, as the retail price of petrol registered a new record high on Wednesday in Delhi with oil marketing companies (OMCs) increasing pump prices by 25 paise a litre to ₹86.30.
Diesel prices were also up by 25 paise a litre to retail at ₹76.48 a litre in the National Capital Region. Diesel was retailing at a record high in Mumbai at ₹83.30 a litre. On 30 July 2020, diesel had peaked to an all-time high of ₹81.94 a litre in Delhi. OMCs started increasing auto fuel prices since early January, after holding steady for 29 days.
With Saudi Arabia, the world’s largest oil producer reducing production, and fears of tightening physical supply despite ongoing vaccination drive worldwide, the global crude oil prices have risen. While Brent was trading at $56.12 per barrel, while West Texas Intermediate trading at $52.82 a barrel, at the time of writing this article. Every dollar per barrel rise in crude prices increases India’s oil import bill by ₹10,700 crore on an annualized basis.
India spent $101.4 billion on crude oil imports in 2019-20 and $111.9 billion in 2018-19. The cost of the Indian basket of crude, which comprises Oman, Dubai and Brent crude, was at $55.17 a barrel on 22 January.
Following the covid outbreak, crude prices had plunged to $19.90 in April before recovering to $49.84 a barrel in December, data from the Petroleum Planning and Analysis Cell showed. It averaged at $56.43, $69.88 and $60.47 per barrel in FY18, FY19 and FY20, respectively.
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