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NEW DELHI: Oil marketing companies (OMCs) raised prices of petrol and diesel by 80 paise a litre each on Wednesday. Petrol is now priced at ₹105.41 a litre in the national capital, while diesel sold for ₹96.67 a litre.
With the latest hike, fuel prices have risen a total of ₹10 in the national capital in the past 16 days.
In Mumbai, petrol prices are higher at ₹120.51 per litre, while diesel costs ₹104.77 a litre.
On Tuesday, union petroleum and natural gas minister Hardeep Singh Puri told the Lok Sabha that in the backdrop of the Russian-Ukraine conflict, petrol prices in India have gone up by merely 5% as against over 50% in some developed countries.
Noting that economies across the world have been impacted by the war and global supply chains disrupted, Puri said, “We are not the only country impacted by the war."
The minister said in many countries, including the US, the UK, Canada, Germany and Sri Lanka, fuel prices have risen more than 50%. “Our percentage increase is 1/10th of what it is elsewhere."
High global crude oil prices have a direct impact on India's economy as the country imports over 85% of its energy requirements.
Crude oil futures were mixed on Wednesday, recovering from early losses, as the threat of new sanctions on Russia raised supply concerns, countering fears of weaker demand following a build in U.S. crude stockpiles and Shanghai's extended lockdown.
At 0945am, the Brent June contact on the Intercontinental Exchange traded at $106.80 a barrel, up 0.15% from previous close. The May contract of West Texas Intermediate on NYMEX was marginally lower at $101.88 a barrel.
Ravindra Rao, Head of Commodity Research at Kotak Securities, said, "Crude came under pressure as EU once again decided to avoid any direct restrictions on Russian’s crude or natural gas exports. Also weighing on price is API report which noted an unexpected increase in US crude oil stocks."
While a resurgence in covid cases in China has weighed on prices, supply risks and tighter US and global stocks have been providing a firm support, he said. “Crude may remain rangebound to negative ahead of inventory report however supply risks may keep a floor to prices."
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