Breaking all previous records, petrol price has touched Rs 79.99 and diesel Rs 72.07 per litre in Delhi on Friday. Fuel prices have been sky-rocketing continuously for the past 12 days till Friday, the sole exception being Wednesday.
In Mumbai, petrol prices shot up to Rs 87.39 from Rs 86.9.
The surge in fuel prices is courtesy the rise in crude oil prices and high excise duty in the country. The recent slump in the rupee has also lifted the import cost of crude oil, subsequently affecting the fuel prices.
On Wednesday, Finance Minister Arun Jaitley had said that there was no need for a 'knee-jerk' reaction to the rising prices of global crude oil.
"These are not situations which merit knee-jerk and panic reaction. There is no straight-line movement in global oil prices," Jaitley said, adding that crude oil prices edged higher in April and May whereas they calmed down in June and July.
Since the start of the calendar year, petrol price in Delhi has gone up by 13.6 per cent from Rs 69.97 on January 1, 2018. The hike in diesel price has been even more steep. It has gone up by 19.8 per cent since January 1, 2018 when it was Rs 59.70.
Recently, geo-political factors such as trade war fears, upcoming Iran sanctions and conflicts in the Middle East, along with supply side constraints have led to a sharp increase in global crude oil prices.
The rise in global crude oil prices pushes the domestic cost of petrol and diesel higher as the country is a net importer of crude oil.
(With inputs from Onmanorama)