Petrol in Delhi is priced at Rs 73.73 a liter in and Rs 81.59 per liter in Mumbai, with strong global demand and crude prices rising internationally, due to the high prices of diesel in the country. At the same time, the price of petrol has reached the highest level in the last four years.
Rising prices of crude are a matter of concern for a developing country like India as it imports it in large volume. It is also expected to increase inflation. Increasing the price of crude will reduce the expected cut in future and the demand for foreign exchange can be seen. Increasing prices of petrol and diesel might also increase the pressure on the government to provide a subsidy.
Crude oil prices have seen strong recovery since July 1 of last year. During this period, crude oil prices have seen a jump of 47%. In 2017–18, India’s oil import bill reached close to $ 88 Billion, which was close to $ 70 Billion last year. India imports about 82% of its oil from other countries.
On Sunday, the prices of diesel in Delhi, Mumbai, Kolkata, and Chennai reached the record price in four metros of India. On the Indian Oil pump, the price of diesel in Delhi was Rs 64.58 per liter and in Mumbai, it was Rs 68.77 per liter. On the other hand, petrol prices were highest recorded in Delhi on Sunday after September 2013.
Petrol prices were the highest since July 2014 in Mumbai and Chennai, while the prices of petrol were the highest since August 2014 in Kolkata. In Delhi, petrol was sold at Rs 73.73 per liter and in Mumbai at Rs 81.59 per liter. Indian Oil, Bharat Petroleum, and Hindustan Petroleum have control over 92% of India’s total fuel market. Private companies such as Reliance, Essar, and Shell manage the rest of the market.