Petrol, diesel prices go up for fourth consecutive day amid US-Iran tension
Oil prices soared more than 3% on Friday following the killing of Iranian military commander Qassem Soleimani.
Fuel prices went up for the fourth consecutive day on Sunday on the heels of international oil prices also shooting up. Prices across the globe have risen following the United States’ assassination of Iranian General Qassem Soleimani on Friday, PTI reported. The killing has triggered concerns of fresh conflict over oil in crude-rich West Asia.
The retail pump price of petrol was increased by nine paise per litre and diesel by 11 paise a litre. In Delhi, petrol costs Rs 75.54 per litre – the highest in over a year. Diesel in the national Capital was priced at Rs 68.51 for every litre.
Oil prices soared more than 3% on Friday following Soleimani’s death. The top Iranian military commander’s killing represented “a significant spike in geopolitical risks and could lead to a direct confrontation between the US and Iran,” said Oxford Economics, according to AFP.
Petrol prices have gone up since January 2 by 38 paise per litre while diesel rates have risen by 55 paise. The price of petrol has been on the rise since December 26 and diesel since November 29.
India relies on imports to satiate its oil requirements and any increase in worldwide prices impacts its economy. Domestic crude oil, which forms the raw material for petrol, diesel, and other petrol products, is also priced as per international standards.
West Asia, especially Iraq and Saudi Arabia, contribute to over two-thirds of India’s oil imports. There is no immediate threat of any disruption in the supply chain to India and the only effect of the US airstrikes would be on prices, said unidentified officials. “Nowhere in the world has seen any supply being stopped because of US strikes,” an unidentified official said. “Oil continues to flow as normal.”
Meanwhile, United States President Donald Trump on Saturday warned Iran that his administration is targeting “52 Iranian sites” that will be hit “very fast and very hard” if Tehran planned any attacks on Americans or Washington’s assets.