Petrol prices surge in national capital, Rs 80 per liter

The high cost of global crude oil and a weak rupee led the petrol price in Delhi to cross a record high level of Rs 80 per liter on Saturday.

Across metro centers, the key transportation fuel cost rose between 38 and 47 paise a liter.

In the national capital, the petrol price rose by 39 paise to Rs 80.38 a liter from Rs 79.99, as per the Indian Oil Corporation (IOC) website. The latest hike in prices has placed Delhi with three other metros where petrol costs above Rs 80 per liter.

Besides, diesel price in Delhi has also gone up. It rose by 44 paise to Rs 72.51 from Rs 72.07 per liter.

The prices of both petrol and diesel have been at their record high levels for around a week now.

In the other key cities of Mumbai, Chennai, and Kolkata, the cost of petrol rose by 38 paise, 41 paise and 39 paise to Rs 87.77, Rs 83.54 and Rs 83.27 per liter on Saturday, respectively.

According to sector experts, a weak rupee along with high excise duty have been major factors for the rise in fuel prices.

On the currency front, the Indian rupee settled above 70 to a US dollar in the spot market for the week ended Friday. It closed at 71.73, stronger by 26 paise than its previous close of 71.99 per greenback.

Apart from the weak local currency, the high global crude oil cost has become a major concern for the country which is a net importer of oil.

Currently, Brent crude oil prices stand at around $77 per barrel.

In tandem with the petrol prices, diesel prices, too, rose in the metro cities of Mumbai, Chennai, and Kolkata by 47 paise, 47 paise and 44 paise to Rs 76.98, Rs 76.64 and Rs 75.36 per liter, as per the IOC data.

Since the start of the year, the petrol price in Delhi has risen by Rs 10.41 from Rs 69.97 a liter and the diesel price has gone up by Rs 12.81 from Rs 59.70 a liter on January 1.

Implication wise, the rise in diesel prices is expected to flare up the inflationary pressure as the fuel is primarily used to transport the majority of goods including agriculture products.

As per the country's pricing mechanism, the domestic fuel prices are dependent upon the international fuel prices on a 15-day average and the impact of the rupee-US dollar fluctuations.