Fuel prices continue to rise for 12th consecutive day

The prices of petrol and diesel continue to rise for a 12th consecutive day on Thursday. In Delhi, petrol selling price is Rs 79.51 per litre it jumps from Rs 79.31, while in the financial capital petrol price stands at Rs 86.91 per litre.

If we talk about the diesel price in the Indian market, its price also rising day by day, diesel price went up and stood at Rs 71.55 per litre in the capital Delhi and Rs 75.96 per litre in Mumbai. According to the report, the fuel prices have increased due to rise in crude oil prices in the International market and heavy excise duty in the country. Interestingly, the Bent cured oil is currently stood at $78 per barrel.

The weakness of the Indian Rupee against the US dollar has affected the rupee-dollar exchange rate, putting pressure on the prices here. It has also lifted the import cost of crude oil, subsequently affecting the petrol and diesel prices. Domestic credit rating agency Icra said in a report on Monday that,  “the global oil prices have risen by about 10 per cent over the past two weeks on declining inventories and a faster-than-anticipated decline in Iranian exports as the countdown to the enforcement of US sanctions begins.”

The report says, “While China and European Union intend to continue imports from Iran, banking channels and re-insurers are increasingly shying away, leading to a sharp cut in purchases. The dual impact of rising oil prices and depreciating rupee does not augur well for PSU (public sector unit) oil and gas companies as it will increase their regulatory risks.”

Also read: Fuel prices rise for a 15th day, reaches ₹ 86.08 in Mumbai