We continue to witness a rising trend in fuel prices of India, and Tuesday was no different as the state-owned OMCs raised petrol prices between 29 paise to 32 paise per litre in various state capitals of India. Cities like Mumbai, Kolkata, New Delhi and Chennai are seeing this product hitting over 5-year highs. Karnataka Election 2018 continues to take twist and turn, and the impact of this can be recorded in petrol price. Looking at the new trend, one can expect petrol price to reach up to Rs 85 per litre in Mumbai. With the rise showing no signs of abating, today Oil Minister Dharmendra Pradhan explained the rise in fuel prices was caused due to reduction seen in production of  oil in Organisation of Petroleum Exporting Countries (OPEC) and hike in crude oil price in the international market. 

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So far, Brent crude has shoot up to near $79 per barrel. Retail prices have shot up to record highs, but Indian government has ruled out the possibility to ease excise duty. States too are reluctant to cut Value Added Tax. To add to the woes of consumers, the rupee has been hovering near 68-mark against US benchmark dollar index.

Today the petrol price of New Delhi has  touched over 5-year high of Rs 76.87  per litre higher by 30 basis points compared to previous day price of Rs 76.57 per litre.

Going ahead India’s financial hub Mumbai has witnessed a situation where petrol price has hit Rs 84.70 per litre today, which is also up 30 paise against previous day price of Rs 84.40 per litre. This city has the most expensive petrol price.

Furthermore, Chennai saw the most hike in it’s prices to Rs 79.79  per litre on Tuesday, above 32 paisa compared to previous price of Rs 79.53 per litre.

The current level of above mentioned three cities is already at five year highs as last time this trend was recorded in September 2013.

Now in Kolkata, the price were raised by 29 paisa to Rs 79.53 per litre as against Rs 79.24 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. 

Meanwhile, today’s international crude oil prices rose on concerns that Venezuela`s crude output could drop further following a disputed presidential election and potential U.S. sanctions on the OPEC-member. 

Therefore, Brent crude futures were at $79.39 per barrel at 0226 GMT, up 17 cents, or 0.2 percent, from their last close. Brent broke through $80 for the first time since November 2014 last week. U.S. West Texas Intermediate (WTI) crude futures were at $72.47 a barrel, up 23 cents, or 0.3 percent.

Following the above factors, from May 14 to till today, petrol prices have rose by Rs 2.2 per litre each in Mumbai and Rs 2.21 per litre in Kolkata, whereas New Delhi had slightly higher hike by Rs 2.24 per litre and Chennai the most by Rs 2.36 per litre.

Controlling the rise of petrol prices has become crucial for the NDA government as 2019 election looming.