Fuel prices across the country hit a fresh all-time high after state-run oil marketing companies (OMCs) hiked rates on Tuesday. Petrol and diesel prices have been hiked by 25 paise and 30 paise respectively.

Petrol price increased to Rs 102.64 per litre in Delhi and Rs 108.67 per litre in Mumbai after the fresh hike. It went up to Rs 103.36 per litre in Kolkata and Rs 100.23 per litre in Chennai. The cities where petrol and diesel prices have crossed Rs 100 per litre have increased after the fresh round of hikes.

Diesel rates across the country have also increased sharply over the past few days. It costs Rs 91.07 per litre in the national capital and nearly Rs 99 per litre in Mumbai after today’s hike.

Recap | Check Monday’s fuel prices

Diesel is retailing at Rs 94.17 per litre in Kolkata and Rs 95.59 per litre in Chennai. There are some major cities where it has crossed Rs 100 per litre including Jaipur.

A surge in international crude oil prices is to blame for the recent rise in domestic fuel prices. Global crude oil rates hit their highest levels in at least three years on Tuesday after OPEC+, the group comprising the world’s top oil producers, announced they had decided to keep a cap on supplies despite rising demand.

Government’s 9 reasons in 9 months as fuel prices soar

Benchmark Brent crude was up 0.22 per cent at $81.44 at the time of writing this article. It rose sharply by over 2.5 per cent on Monday. A recent report indicates that crude oil prices could hit $90 per barrel by December.

Experts are worried about the sharp rise in crude oil prices as it is likely to have a devastating impact on emerging economies that import a large quantity of crude oil. It may be noted that India is one of the largest importers of crude oil in the world.

Domestic fuel rates could rise steeply if crude oil prices continue to climb as the Centre and state governments have already ruled out the possibility of reducing taxes levied on petrol and diesel.

In such a scenario, economic growth could slow down significantly due to rising inflation during the all-important third quarter.

Inflation is expected to rise sharply in the coming months due to rising power costs and its impact will be felt across key sectors including manufacturing. The resultant price hikes across categories could lead to subdued consumer demand, which is a key driver of economic growth.

Petrol and diesel prices in major Indian cities