Petrol ,diesel prices hit a fresh high

Petrol and diesel prices climbed to a fresh high in the country on February 10 as rates were increased by the most in recent times.

Petrol and diesel prices were hiked by 30 paise per litre and 25 paise per litre, respectively in Delhi, according to price notification of state-owned fuel retailers. The increase took petrol prices to a fresh high of Rs 87.60 a litre in Delhi, while the diesel rates rose to Rs 77.73 per litre in the national capital.

In Mumbai, the petrol price rose to Rs 94.12 per litre, 29 paise higher than the previous day when the fuel was sold at Rs 93.83 a litre. The diesel price remained the same in the financial capital at Rs 84.63 per litre on the day.

Brent crude oil price rose above $60 per barrel for the first time on February 8 in more than a year on improving demand outlook amid the global rollout of COVID-19 vaccines.

Last week, Mukesh Kumar Surana, head of India's third-largest fuel retailer Hindustan Petroleum Corporation Ltd (HPCL), said that a sudden spike in international oil prices because of a perception of mismatch in demand and supply as well as a cut in production by Saudi was fuelling the retail price hikes.

Also last week, Oil Minister Dharmendra Pradhan told the Rajya Sabha in a written reply to a question that excise duty levied by the central government makes up for Rs 32.98 per litre of the price of petrol in Delhi and sales tax or VAT of the state government constitutes Rs 19.55.