New Delhi: Fuel prices were hiked by up to 25 paise per litre on Wednesday, the largest single-day increase in almost three months, even as global oil markets were roiled from the attack on Saudi Arabia’s crude oil facilities.
According to information put out by state-owned fuel retailers, in the national capital, the price of petrol was increased by 25 paise per litre to Rs 72.42 while diesel was hiked by 24 paise to Rs 65.82.
The price of auto fuel in the Delhi market is considered a national benchmark. Data put out by Indian Oil Corporation indicated that the price of petrol in Kolkata was Rs 75.14, Rs 78.1 in Mumbai and Rs 75.26 per litre in Chennai.
This is the biggest single-day hike since July 5, which is when finance minister Nirmala Sitharaman’s budget effectively raised rates by almost Rs 2.50 a litre due to an increase in excise duty on auto fuel.
The hike on Wednesday followed a 14 paise a litre increase in price of petrol on Tuesday and 15 paise per litre rise in diesel rate.
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Following the drone strikes on Saturday, international oil prices rallied nearly 20% on Monday in intraday trading – the biggest jump in almost 30 years – as the attacks reportedly reduced up to half of Saudi Arabia’s output.
Rates have in subsequent two days retreated, conceding about half of the gains. Brent crude future on Wednesday dipped 0.26% to $64.38 per barrel after jumping to near $72 in reaction to the disruption. US West Texas Intermediate (WTI) crude lost 0.5% to $59.06 per barrel.
This came after signs that Saudi Arabia was quickly restoring production at Abqaiq facility. Abqaiq is now processing about 2 million barrels a day and should return to pre-attack levels of about 4.9 million barrels by the end of September, Saudi Aramco chief executive Amin Nasser said.
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Saudi Crown Prince Mohammed bin Salman has reportedly stated that two-thirds of production has been restored and the kingdom sees a full recovery in 10 days.
Oil minister Dharmendra Pradhan on Tuesday said India, the world’s third-largest oil consumer, is keeping a close watch on the developing situation.
India imports 83% of its oil needs, with Saudi Arabia supplying a fifth of these. Saudi Arabia is its second-biggest supplier after Iraq. It sold 40.33 million tonne of crude to India in 2018-19 fiscal, when the country had imported 207.3 million tonne of oil.
(With inputs from PTI)