Petrol price hits fresh record highs across India, nears ₹109/L in Mumbai

New Delhi: Fuel prices scaled fresh record highs across the country on October 5 after petrol was hiked by 22 to 29 paise per litre and diesel by 28 to 32 paise per litre, according to notifications by state-run oil companies.

The latest round of price hike pushed petrol to Rs 102.64 per litre in Delhi and Rs 108.67 per litre in Mumbai, and diesel to Rs 91.07 per litre in Delhi and Rs 98.80 per litre in Mumbai.

In Kolkata, petrol prices soared to Rs 103.36 per litre and diesel prices to Rs 94.17 per litre. In Chennai, petrol retailed at Rs 100.23 and diesel at  Rs 95.59 a litre.

Petrol and diesel prices differ across states, depending on the incidence of local taxes.

Tuesday's price hike was the sixth revision in around a week, which saw fuel prices hovering above Rs 100 in most major Indian cities. Similarly, the ninth increase in prices in 11 days shoved diesel rates above Rs 100 mark in several cities.

State-owned Indian Oil Corporation (IOC), Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL) resumed daily price revisions on September 24 after international oil prices neared a three-year high. Global benchmark Brent crude is trading above $78 per barrel.

When international oil rates fell in July and August, retail prices of petrol and diesel in the Delhi market were reduced by Rs 0.65 and Rs 1.25 per litre.

Prior to that, the petrol price was increased by Rs 11.44 a litre between May 4 and July 17. The diesel rate had gone up by Rs 9.14 during this period. India depends on imports for nearly 85 percent of its oil needs and so benchmarks local fuel rates to international oil prices.

Petroleum Secretary Tarun Kapoor said oil companies are taking their own decision on aligning retail rates with the cost but they are ensuring that extreme volatility is avoided.

"We are watching the situation and trying to ensure the impact of global volatility is moderated to a large extent," he said. The basket of crude oil India buys has jumped to a near three-year high of $76.71 per barrel. International prices of petrol, against which local rates are benchmarked, have risen from $85.10 per barrel to $87.11 in just one day while diesel has gone up from $85.95 a barrel to $87.27.

This sudden spike in international oil prices follows global output disruptions but the entire increase in retail rates necessitated by such an increase is not being effected, another official with direct knowledge of the matter said.