Despite crude oil falling to near $74-mark, your petrol price hiked to new record for 15th straight day

Looks like petrol price in India and international crude oil valuation are trending in opposite directions. And consumers have been left to foot the bill, rather than getting relief. Where Brent crude has reversed gains and is currently trading near $74 per barrel from their four-year highs of $80 per barrel, the state-owned OMCs have continued to hike petrol prices to record level for 15th consecutive day. Well, it's bad news even going forward for the end consumers as they are going to have to bear a heavier load in days to come. Today, the OMCs have raised petrol price in the range of 15 paisa per litre each in various state capitals. Guess what! Now you will pay over Rs 86  per litre in Mumbai, over Rs 78 per litre in New Delhi and Rs 81 per litre in Chennai. The city Kolkata is also not far away may soon join the Rs 81 per litre club. 

Today the petrol price of New Delhi has touched a new high of Rs 78.12 per litre higher by 15 basis points compared to previous day price of Rs 78.27 per litre.

Going ahead India’s financial hub Mumbai has witnessed a situation where petrol price has hit Rs 86.06 per litre today, which is also up 15 paise against previous day price of Rs 85.93 per litre. This city has the most expensive petrol price. Over Rs 86 per litre has never been seen in this city. 

Furthermore, Chennai saw petrol at Rs 81.26  per litre on Monday, above 15 paisa compared to previous price of Rs  81.11 per litre.

Now in Kolkata, the price was raised by 15 paisa to Rs 80.91 per litre as against Rs 80.76 per litre of previous day. This city’s price is nearly five-year high as last time it stood at this level in December 2013. Looking at the other cities trend, customers will soon pay Rs 81 per litre in Kolkata as well.

The rise of petrol price in India were despite U.S. oil futures hit six-week lows on expectations major producers may ease output curbs on Monday, while Asian stocks and U.S. share futures gained on signs the United States and North Korea were still working towards holding a summit.

Therefore, Brent crude futures slipped as much as 2.6% to $74.49 per barrel, their lowest level in about three weeks. They last stood at $75.00, down 1.8%. 

Following the above factors, from May 14 to till today, petrol prices have rose by Rs 3.60 per litre in Mumbai and Rs 3.59 per litre in Kolkata, whereas New Delhi had slightly higher hike by Rs 3.64 per litre and Chennai the most by Rs 3.84 per litre.

OMCs take into consideration the daily performance of international crude oil, government's excise duty and state's VAT for deriving final retail prices in India.