Petrol, diesel prices likely to rise sharply on Iran-US tensions

Petrol and diesel prices were hiked marginally for the second successive day on Friday following a surge in crude oil rates. While, price of petrol was raised by up to 10 paise per litre, price of diesel increased by up to 15 paise per litre, according to the website of IOC. Since domestic fuel prices are directly dependent on international crude oil prices, petrol and diesel prices are likely to jump sharply in the next few days over increasing tensions in the oil-rich Middle East countries.

Brent crude oil price rose over 4% today after US airstrikes killed a top Iranian commander at Iraq airport, heightening geopolitical tensions. Brent crude oil price rose up to $69.16 per barrel marking a spike of 4.39% its highest level since September against previous close of $66.25 per barrel.

As per revised prices, the petrol rates stand at Rs 75.35 per litre in Delhi, Rs 80.94 per litre in Mumbai, Rs 77.94 per litre in Kolkata, and Rs 78.28 per litre in Chennai, respectively.

On the other hand, diesel prices in Delhi, Mumbai, Kolkata, and Chennai rose to Rs 68.25, Rs 71.56, Rs 70.61, and Rs 72.12 per litre, respectively.

Also read: Who is General Qassem Suleimani? Iran's top commander killed by the US

Petrol was selling at Rs 76.52 a litre  in Noida and diesel price stood at Rs 68.52 a litre.  In Gurugram, petrol price rose to Rs 74.42 per litre while diesel was selling at Rs 67.20 a litre.

On Thursday, OMCs hiked retail price of petrol and diesel by 8-11 paise and 11-14 prices per litre, respectively. In 2019, the retail price of diesel rose by about Rs 5.1 a litre while the price of petrol rose by Rs 6.3 per litre.

Petrol and diesel prices are revised on a daily basis in line with change in international crude oil prices.  Indian Oil, Bharat Petroleum and Hindustan Petroleum release the new rates at 6 am every morning.

Oil marketing companies consider other factors such as rupee to US dollar exchange rate, global cues and demand for fuel in deciding the price of petrol and diesel.