Following a seven-day lull, petrol and diesel prices witnessed a hike on February 4.
In the national capital, the price of petrol was increased by 35 paise from Rs 86.30 per litre to Rs 86.65 per litre, and diesel saw an upward revision from ₹ 76.48 per litre to ₹ 76.83 per litre, according to Indian Oil Corporation.
The other metro cities also witnessed a subsequent rise in prices, the highest among all being Mumbai, where the petrol and diesel prices rose to ₹ 92.86 per litre and ₹ 83.30 per litre respectively.
A report by NDTV noted that Oil marketing companies namely Indian Oil Corporation, Bharat Petroleum, and Hindustan Petroleum align the prices of domestic fuel with the global benchmarks, by taking into account any alterations in the foreign exchange rates. Thus any changes in fuel prices are implemented with effect from 6 am every day.
Petrol and diesel prices have been recording an upswing ever since January 6, 2021, after staying unchanged for almost a month. Fuel rates have increased amid a rally in global crude oil prices, with COVID-19 vaccination drives beginning across the world.
Oil markets continued to advance as inventories hit their lowest level since March. U.S. crude recently rose 0.45% to $55.94 per barrel and Brent was at $58.67, up 2.11% on the day, a Reuters report said.
Recently, Finance Minister Nirmala Sitharaman's Union Budget 2021 proposed an Agricultural Infrastructure and Development CESS of Rs 2.5 per litre on petrol and Rs 4 on diesel. However, prices for petrol and diesel won't change because or reduction in other duties.