Petrol crosses ₹100 mark in Delhi, ₹115 in Mumbai

Petrol and diesel rates were hiked again on Tuesday, taking the price of one litre of petrol to ₹100.21 in Delhi.

While petrol prices were hiked by 80 paise, diesel rates were raised by 70 paise, according to a price notification by state-run fuel retailers.

This is the seventh hike in fuel prices in the past eight days. On the first four occasions, prices were increased by 80 paise a litre. On the following days, petrol price went up by 50 paise and 30 paise a litre while diesel rose by 55 paise and 35 paise a litre.

With the fresh hike, petrol prices have jumped by ₹4.80 per litre.

In Mumbai, a litre of petrol now costs ₹115.04, while diesel is being sold at ₹99.25. Fuel prices are the highest in Mumbai compared to other metros.

In Chennai, one litre of petrol will now cost ₹105.94 and a litre of diesel will cost ₹96. In Kolkata, it's ₹109.68 per litre for petrol and ₹94.62 per litre for diesel.

The price hike comes at a time when Brent crude – the international benchmark – is hovering over $110 a barrel amid supply concerns due to the Russia-Ukraine war.

India imports around 85% of its annual oil requirement.

Fuel prices were kept on hold amid assembly elections in states like Uttar Pradesh, Punjab, Uttarakhand, Goa and Manipur.

The rising crude prices are expected to severely impact India's foreign exchange outgo, fiscal deficit and inflation numbers.

The steep rise in crude oil prices can cost the government over ₹1 lakh crore in the next financial year if the Centre continues to levy the reduced taxes on petrol and diesel, SBI Research had said in a report.

"If crude oil prices are at an average of $100/bbl., inflation is likely to increase by 52-65 basis points," the report said. "Every $10/bbl increase in Brent crude price will lead to an increase in inflation by 20-25 bps."