Petrol, diesel prices continue to rise as threat of US-Iran war intensifies

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New Delhi: Petrol and diesel prices were hiked marginally for the fourth straight day on Sunday (January 4) as crude oil prices jumped after the United States killed top Iranian general Qasem Soleimani. The global stock markets were mixed following tensions escalating in the Middle East after Soleimani's death.

As per data by Indian Oil Corporation Ltd., the petrol price increased 9 paise per litre and that of diesel by 11 paise. After the price revision, petrol and diesel stood at Rs 75.45 per litre and Rs 68.40 per litre respectively in Delhi and across major cities of the country on Saturday. 

Since January 02, 2020, petrol prices have increased by 38 paise per litre while diesel rates have gone up by 55 paise.

The retail prices of petrol and diesel are dependent on the global crude oil prices and the rupee-US dollar exchange rate as India imports 80 per cent of its crude requirements. India is 84 percent dependent on imports to meet its oil needs and any spike global prices will have a direct impact on the country's economy. 

The Middle East accounts for more than one-third of the country's oil imports, with Iraq and Saudi Arabia being the top suppliers.

Domestic petrol and diesel prices are reviewed by oil marketing companies on a daily basis. Price revisions are implemented at the fuel stations with effect from 6 a.m. Domestic fuel prices are determined broadly by the international crude oil rates and the rupee-dollar foreign exchange rates and are reviewed on a daily basis.