Petrol prices at 13-month high across key metros

Petrol prices at pumps across the country have touched their highest levels during the past 13 months due to a steady rise in crude oil prices in the international market.

In Bengaluru, petrol prices stood at Rs 77.79 a litre on Thursday, the highest since November 15, 2018, when petrol in the city traded at Rs 77.90 a litre. In the past year, petrol prices in the city surged by 12.4% (Rs 8.58 a litre), after touching a low of Rs 69.21 on January 2 last year.

Similarly, in the financial capital Mumbai, fuel prices stood at Rs 80.87 a litre, the highest since November 24, 2018, when they traded at Rs 80.79 a litre.

Likewise, in poll-bound New Delhi, petrol prices touched Rs 75.25 a litre — highest since November 23, 2018.

Experts say the surge in prices has been driven by the rise in crude oil prices in the global markets. The prices of benchmark Brent crude have surged by 16% in the past three months to $66.33 a barrel from $57.19 a barrel on October 2 last year.

“Crude has been on a surge because of tensions in West Asia — there were strikes at the Aramco installation and some strikes by the US during the past few months. Also, after the initial deal between the US and China, there is an uptick in the demand. US oil reserves have also been coming down in the past few months,” said Kavita Chacko, Senior Economist at CARE Ratings.

This trend of the gradual rise in pump station prices is likely to push inflation numbers further — albeit mildly.

“Though the weight of petrol in the CPI basket is not much, it is used as raw material in many of other components in the basket. So, if pump prices keep going up, we might see it impacting inflation,” Chacko added.