With fuel costs increasing for the fifth day straight on Friday, following the 19-day hiatus, the price of petrol in Mumbai is barely 17 paisa less than the all-time high of Rs 83.62.
According to Indian Oil Corporation, the prices of petrol and diesel were increased by 28 to 31 paise per litre across cities like Mumbai, Delhi, Kolkata, and Chennai on Friday.
In Mumbai, the cost of petrol touched Rs 83.45 per litre, barely 17 paise less than the all-time high of Rs 83.62. The fuel price in other metro cities was also hiked to Rs 75.61 in Delhi, Rs 78.29 in Kolkata, and Rs 78. 46 in Chennai.
As for diesel, the prices stood at Rs 71.42 in Mumbai, Rs 67.08 in Delhi, Rs 69.63 in Kolkata, and Rs 70.8 in Chennai. At 67.08, the price of diesel has reached an all-time high in Delhi.
In the last five days, the prices of petrol have increased between Rs 0.97 and 1.03 in the four major metros, while diesel cost has been hiked between Rs 1 to 1.24.
According to Kotak Institutional Equities, oil marketing companies (OMCs) need to raise petrol prices by Rs 4.6 and diesel by Rs 3.8 per litre in the short term to make up for the deficit brought on by the 19-day period, where fuel costs remained unchanged.
Overall, the cost of petrol has been increased by Rs. 5.58 in Mumbai, Rs. 5.64 in Delhi, Rs. 5.57 in Kolkata, and Rs. 5.93 in Chennai this year alone.
Diesel prices, meanwhile, have been raised by Rs. 8.15 in Mumbai, Rs 7.44 in Delhi, Rs. 7.33 in Kolkata, and Rs. 7.97 in Chennai in the same period.
The rise in fuel costs can be attributed to the increasing price of crude oil in the international market, which climbed above $80 per barrel on Thursday for the first time since November 2014.
Since India imports more than 80 percent of its crude oil requirement from the international market, the prices of petrol and diesel are directly proportional to international crude oil prices and rupee-dollar forex rate.