The fuel prices hit a new high for the 15th day in May 2018 and on Monday recorded a hike of 43 paise to Rs 86.08 per liter in Mumbai. Diesel prices, on the other hand, were hiked by 44 paise to Rs 73.64 per liter in Mumbai.
Since the dynamic pricing system resumed on May 14, petrol and diesel prices have risen by Rs 3.64 and Rs 3.24 respectively in the last 15 days in Delhi.
Brent crude futures, the international benchmark for oil prices, traded at $74.76 a barrel on the ICE. Union Minister Nitin Gadkari had said that subsidizing petrol and diesel to bring down their retail prices will take money away from government’s social welfare schemes.
A possible drop in Venezuela’s crude output after a disputed presidential election, potential US sanctions on the country as well as US’ tough stance on Iran are the key price drivers.
OPEC may decide to raise oil output as soon as June due to worries over Iranian and Venezuelan supply and after Washington raised concerns the oil rally was going too far, OPEC and oil industry, Indian Oil (IOC), the country’s top refiner, will turn to its traditional oil suppliers, mostly in the Middle East, if U.S. sanctions against Iran result in supply disruption.