The rise in Indian basket of imported crude oils pushed the diesel price in the national capital to a record high of Rs 62.25, while petrol rate edged up to Rs 71.56 a litre, its highest level in over three years.
As per the official data on daily revision of fuel prices, diesel price was hiked by 19 paise a litre and petrol by 17 paise per litre, applicable from 6 a.m. on Thursday.
Similarly, price of diesel in Kolkata and Chennai also hit a record high of Rs 64.91 and Rs 65.63 per litre, respectively. In Mumbai, diesel price on Thursday was Rs 66.30 — the highest since it hit Rs 66.63 in August 2014
The rise in diesel prices across several metros assume significance as the fuel is the mainstay of the transportation sector and will have a consequent upward effect on inflation.
The daily revision allows any rise in international oil rates to be reflected in domestic prices with immediate effect rather than having a waiting period of 15 days as earlier.
Besides daily revision, petroleum products do not come under the Goods and Services Tax (GST) and prices vary at locations according to state taxes.
According to data from Indian Oil Corp, price of petrol in the city also rose to an over three year high of Rs 71.56, the highest since July 1, 2014 when price of the fuel touched Rs 73.60 per litre.
On Thursday, petrol per litre cost Rs 79.44 in Mumbai, Rs 74.28 in Kolkata and Rs 74.20 in Chennai.
Previous highs in Mumbai, Kolkata and Chennai were Rs 79.99 (October 2017), Rs 74.42 (June 2015) and Rs 74.43 (January 16, 2018) respectively.
Several global factors like production curbs and high demand have led to a surge in crude oil prices to a three-year high. As on January 18, it hovered around $70 a barrel.
The Indian crude oil basket comprises of 73 per cent sour-grade Dubai and Oman crudes, and the balance in sweet-grade Brent, closed December 2017 at $62.29 per barrel, according to the Petroleum Ministry.