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Hike in Diesel prices in Indian metros

On Tuesday, in New Delhi, the price of diesel was highest of all-time, when it hit Rs 59.14 per litre.

The diesel prices can disturb the flow of activities without even giving any prior warning, when it comes to everyday life, be it for people or companies.

On Tuesday, in New Delhi, the price of diesel was highest of all-time, when it hit Rs 59.14 per litre. The diesel prices are raising for some time now, in line with the increase in global crude oil prices. As the supply from overseas markets thinned out over the last couple of months, the price of diesel are affected.

The other metropolitan cities of India are also affected by the hike in price. Fuel prices in Kolkata is currently at a 3-year high and in Mumbai and Chennai, it is the highest it has been since May and January, respectively.

The price of petrol in Mumbai was Rs 79.94 a litre, the highest since August 2014, while that of diesel was Rs 62.75, on Monday. In Kolkata, diesel cost Rs 61.73 a litre, while in Chennai it cost Rs 62.30 a litre.

The Petroleum Minister Dharmendra Pradhan said that the recent surge in diesel and petrol prices is primarily due to an increase in international prices after two hurricanes – Harvey and Irma. This resulted in a shutdown of 13 percent of the United States’ refinery capacity.

Due to the hurricane in the US, the fuel prices have gone up recently. As soon as the prices will be reduced in the international market, the effect will be seen in India as well.

Since the US shutdown and people all over the country are up in arms about it, prices in Delhi alone have risen by as much as Rs 5.74 a litre. Pradhan tried pacifying disgruntled citizens by saying that the surge in prices of diesel and petrol are only transient and that they will ease soon, but this was just met with more scepticism.

On the other hand, the Indian market experts said that the fuel prices are poised to come down now as the refineries in US have started operating again and Libya and Algeria are expected to increase supply in the forthcoming weeks.

India got its first shipment of US-produced crude oil in a related development, on Monday at Odisha’s Paradip Port, which is one of the first shipments sent to India after the US stopped exporting crude in 1975.

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