Petrol and diesel prices climbed up for the fourth straight day on Sunday as global oil rates escalated after the US assassinated a top Iranian general Qassim Suleimani, giving way to fresh fear of hostilities in the Middle East.
Retail pump price of petrol was inflated by 9 paise per litre and diesel by 11 paise, as maintained by a price notification of state owned fuel retailers.
Petrol price in Delhi is now Rs 75.54 per litre, the highest in more than a year, while a litre of diesel costs Rs 68.51.
While global stock market were ambivalent following the US killing of Qasem Soleimani, oil rates rocketed nore than 3 per cent on friday.
The killing of the top Iranian general represents "a significant spike in geopolitical risks and could lead to a direct confrontation between the US and Iran," Oxford Economics said in a commentary.
India is 84 per cent reliant on imports to meet its oil needs and any soar in global price has a direct bearing on its economy.
Officials stated that there is no immediate threat of any supply disruption to india and the only impact would be sensed in rates.
For an economy that is travailing to revive from a six-year low growth rate of 4.5%, a shoot up in oil prices poses significant risk as it will not just add fuel to inflation but also lead to higher outgo on government subsidies on cooking fuel.
"Nowhere in the world has seen any supply being stopped because of US strikes. Oil continues to flow as normal," an official said.
Sunday’s price surge is the fourth stright day of retail prices going up. Since 2nd January, petrol has escalated by 38 paise per litre while diesel prices have increased by 55 paise.