Gulf tensions push crude oil price above $70 per barrel

While tensions in the Gulf region pushed crude oil prices above USD 70 a barrel, domestic retail petrol continues to be priced at Rs 91.17 a litre and diesel Rs 81.47 a litre in the national capital on Monday. This is the ninth consecutive day when pump prices of auto fuels have remained unchanged.

New Delhi: Global crude oil prices jumped above USD 70 a barrel on Monday for the first time since the Covid-19 pandemic began.

The spike in oil prices comes after Iran-backed Houthi rebels unleashed a coordinated attack on oil facilities and military bases in Saudi Arabia that accounts for over 12 per cent of global crude oil output.

Consequently, the Brent crude futures jumped above USD 70 a barrel on Monday. Similarly, the US crude touched its highest in more than two years.

However, oil marketing companies have spared fuel consumers of yet another petrol and diesel price hike even though the global crude price crossing a year high of $70 a barrel.

Accordingly, petrol continues to be priced at Rs 91.17 a litre and diesel Rs 81.47 a litre in the national capital on Monday. This is the ninth consecutive day when pump prices of auto fuels have remained unchanged.

After a spike in global oil prices seen over the last two weeks with crude prices jumping close to USD 67 a barrel, prices had fallen to around USD 63 a barrel but it has risen again also due to the OPEC+ decision to continue with crude production cut in April.

Petrol and diesel prices have been rising continuously since February 9. In the 14 increases since then, prices have gone up by Rs 4.22 per litre for petrol while diesel rate has risen by Rs 4.34 a litre in Delhi.

The increase in the previous weeks has taken petrol to cross historic high levels of Rs 100 a litre in several cities across the country.

The petrol and diesel prices have increased 26 times in 2021 with the two auto fuels increasing by Rs 7.46 and Rs 7.60 per litre respectively so far this year.

Oil companies executives said that petrol and diesel prices may increase further in coming days as retail prices may have to be balanced in line with global developments to prevent OMCs from making losses on sale of auto fuels.

(IANS)