Oil prices rise in India as production cut boosts crude prices

Following a rise in global crude oil prices, transport fuel rates were hiked on Friday for the third time this month after a prolonged period of fall in petrol and diesel prices. As per data from state-run Indian Oil Corp, petrol prices rose by 19 paise per litre on Friday and diesel by 28 paise across the four major metros.

Petrol price in Delhi was increased to Rs 69.07 per litre on Friday, while in Kolkata, Mumbai and Chennai, the fuel cost Rs 71.20, Rs 74.72 and Rs 71.67 per litre, respectively. Similarly, the price of diesel went up on Friday in the national capital to Rs 62.81 per litre.

In Kolkata, Mumbai and Chennai, diesel sold at Rs 64.58, Rs 65.73 and Rs 66.31 a litre respectively. With petroleum products being outside the GST regime, prices vary as a result of local taxes. As per the country's dynamic pricing mechanism, the domestic fuel prices depend upon international fuel prices on a 15-day average and the value of the rupee. Following the implementation of production cuts by the Organisation of Petroleum Exporting Countries (OPEC) and non-OPEC producers, global crude rates have been hardening and UK Brent crude was trading on Friday close to $62 a barrel after having fallen below $50 last month.

(With inputs from agencies.)