Petrol, diesel prices rise after falling for two weeks

NEW DELHI: Petrol and diesel rates inched higher on Monday after falling for two weeks as international crude oil prices rose.Prices went up 9 paise per litre in case of petrol and 13 paise in case of diesel. At Indian Oil Corporation pumps in Delhi, petrol was priced at Rs 76.25 per litre and diesel Rs 67.75 per litre.Prices of petrol and diesel fell 79 paise and 99 paise per litre respectively between July 15 and July 29.Local petrol and diesel prices are based on the average of trailing 15 days’ international fuel rates and factor in the fluctuation in the exchange rate. State-owned fuel retailers publish rates daily.The reversal in local fuel price trend reflected the rise in global rates of crude oil, which gained $3 a barrel in a fortnight to trade at $75 a barrel on Monday.Crude oil rates have been rising as the looming US sanctions on Iran have begun to hurt supplies from the Islamic republic. US sanctions linked to the petroleum sector are still about three months away from taking effect but refiners are already facing problems in sourcing supplies from Iran.To protect its supplies to India, Iran has offered to insure oil shipments to India after Indian insurers backed out. Unable to share their risk with American and European reinsurers wary of US sanctions, Indian insurers are turning away Indian refiners.Oil prices also rose in response to an announcement by Saudi Arabia last week that it was suspending oil shipments through the Red Sea’s Bab al-Mandeb strait, a key oil trade route, after Iran-linked group attacked two vessels.The trade war between the US and China is, however, expected to hurt demand for energy, and is acting as a check on oil prices.

from The Economic Times https://ift.tt/2vjua79