Petrol price was hiked by 17 paise a litre and diesel by 21 paise as PSU oil firms began passing on the spike witnessed in global rates to consumers on May 14.
With market speculators predicting oil will hit $100 a barrel next year, or even $150, petrol retailers are warning drivers to brace themselves for record prices at the pumps.
It was bolstered by signs that major oil producers are still committed to reducing supply and rising spectre of USA sanctions against Iran. Diesel prices have also increased in line with petrol prices.
A large petrol price increase is expected at the end of this month, going into June.
Brent crude futures LCOc1 stood at $79.32 per barrel at 0027 GMT, up 4 cents from the last close.More news: FDA approves preventative treatment for migraines
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Meanwhile, the government has clearly mentioned earlier that it will not bring down the excise duty rates, the forcing oil PSUs to increase prices of essential fuels as part of the daily revision scheme which started in 2017. Ltd (BPCL) on Monday ended a 19-day break on hiking petrol and diesel prices and switched to the practice of changing rates on a daily basis.
Post this petrol price has risen by 69 paise a liter, that is consists of the 22 paisa hike that affected today that took rate in Delhi to Rs 75.32, the uppermost and the highest in nearly around 5 years span.
With fuel costs increasing for the fifth day straight on Friday, following the 19-day hiatus, the price of petrol in Mumbai is barely 17 paisa less than the all-time high of Rs 83.62. And in Chennai it was Rs 78.16 paisa up by 23 paisa versus previous day prices of Rs 77.93 per litre.
According to Telangana Petroleum Dealers Association, during the last three days, fuel prices were increased by 32 paise on petrol and 72 paise on diesel. The rupee has been down by 6 per cent against the United States dollar so far this year. This could result in a cumulative hike of as much as Rs4 per litre if OMCs get their margins back to April 24 levels assuming crude oil price stay at current rates. OMCs returned to daily price change from May 14. They are estimated to have lost about Rs 500 crore on absorbing higher cost resulting from the spike in worldwide oil rates and fall in rupee against the United States dollar.