Fuel price hike: Petrol hits record high of Rs 80.50 in Delhi

Petrol prices continued their upward march on Sunday, with the price in Delhi touching a record Rs 80.50 per litre amid elevated global crude oil prices and weakness in the Indian rupee.

Diesel prices also climbed, rising by 10 paise to Rs 72.61 per litre in the national capital. Both petrol and diesel prices have been increasing steadily for around a week.

Among other major cities, petrol was priced at Rs 87.89 per litre in Mumbai, Rs 83.54 in Chennai and Rs 83.39 in Kolkata.

Diesel prices also reached fresh highs in these cities, with Mumbai recording Rs 77.09 per litre, Chennai Rs 76.75 and Kolkata Rs 75.46, according to data from Indian Oil Corporation.

Experts attributed the rise to a combination of expensive international crude oil, the weakening rupee and high excise duties. India imports a large portion of its crude oil requirements, making domestic fuel prices particularly vulnerable to movements in global oil markets and the exchange rate.

UK Brent crude was trading at around $77 per barrel, adding pressure to India's import bill. At the same time, the rupee remained above the Rs 71-per-dollar level, closing at Rs 71.73 against the US currency for the week ended Friday.

The impact has been significant since the beginning of the year. Petrol in Delhi has increased from Rs 69.97 per litre to Rs 80.50, while diesel has risen from Rs 59.70 to Rs 72.61.

The sustained increase in diesel prices could have a wider impact on the economy because diesel is extensively used for transporting goods, including agricultural produce. Higher transportation costs can eventually feed into prices of essential commodities and add to inflationary pressures.

Under India's prevailing fuel pricing system at the time, domestic petrol and diesel prices were linked to international fuel prices based on a 15-day average, along with movements in the rupee's value.

With crude oil prices remaining elevated and the rupee under pressure, consumers faced the dual impact of higher global energy costs and a more expensive dollar, keeping domestic fuel prices at record levels.