Petrol, diesel prices likely to be hiked by up to Rs 7 per litre as global crude prices soar

New Delhi: With oil prices at the international market hitting $55 a barrel, oil companies in India are likely to hike the prices of petrol and diesel on Thursday.

Oil companies may take the hike decision after their meeting today.

Twice a month, on 15 and 30/31, oil companies either hike or reduce the prices of fuel in India depending on the international market and the INR-USD exchange rate.

And with the rupee hitting 67 against the US dollar and the price of crude oil in international market hitting USD 55 per barrel, it is very likely that the prices of petrol 

and diesel could be hiked.

Moreover, with the Organisation of Petroleum Exporting Countries (Opec) cutring production of crude oil by 1.2 million barrels per day (mpbd) for the first time since 2008, fuel prices in India are likely to rise in the next 3-4 months, a report said earlier.

As OPEC agreed to cut production of oil for the first time since 2008 in a last-ditch bid to support prices, the prices of Brent oil hit USD 54.56 a barrel, the biggest weekly gain since 2009.

And with this rise in international crude oil price, Crisil Research expects the price of petrol to rise 5-8 percent and that of diesel by 6-8 percent over the next 3-4 months.