Diesel price on Monday was hiked by 25 paise per litre - the third increase since last week -and more rate hikes for both diesel and petrol are in the offing in the coming days as international oil prices have soared to a three-year high.
The price of diesel was hiked to `9.32 per litre in Delhi and to `96.94 in Mumbai, according to a price notification of state-owned fuel retailers.
This is the second straight day of increase in diesel prices and the third since September 24 when the state-owned oil firms ended a three-week hiatus in rates.
Just like the previous two occasions, petrol price was not changed on Monday. It costs ` 101.19 a litre in Delhi and ` 107.26 in Mumbai.
However, industry sources said the price of petrol, alongside diesel, is likely to be increased in the coming days as the rally in international crude oil prices has continued, with Brent Future prices quoting at more than USD 78 per barrel since September 24.
Crude oil prices have reached a nearly three-year high as global output disruptions have forced energy companies to draw more crude oil out of their stockpiles.
Accordingly, US crude oil inventory levels are also nearing a three-year low.
“Global demand for crude oil has been increasing consistently with the easing of pandemic restrictions and improving vaccination rates.
On the supply side, OPEC+ alliance has been slow in easing output restrictions, contributing to the tightened supply in the market,” a source said.
Additionally, hurricanes Ida and Nicholas have impacted crude oil production in the US Gulf of Mexico region, when they hit in late August and September respectively.