After 19 days, diesel becomes costlier amid surge in international oil prices

State-run fuel retailers on Friday raised diesel rates by 20 paise a litre, the first price hike after 19 days of pause as international crude oil prices surged 6.96 per cent at $77.25 a barrel since September 5 on rising demand.

Diesel price, which had softened to ₹88.62 per litre three weeks ago after climbing to record ₹89.87 a litre in mid-July, has been priced at ₹88.82 on Friday in Delhi. Pump prices of petrol in the national capital, however, remained unchanged at ₹101.19 since September 5.

Retail prices of petrol and diesel are under pressure due to rising international oil rates and auto fuel rates may see a northward movement, two executives working in different oil companies said, requesting anonymity. Benchmark Brent crude continued an upward movement in intraday trade on Friday with a gain of 0.14 per cent at $77.36 a barrel. On Monday, HT reported that fuel retailers would start raising rates soon.

As international oil prices dropped below $70 a barrel in mid-August, fuel retailers had reduced diesel rates by 20 paise per litre on August 18 after an all-time high for 34 days. Petrol prices were also reduced by 20 paise a litre on August 22, after it maintained a record of ₹101.84 per litre in Delhi for 36 days.

Subsequently, petrol and diesel had become cheaper in small doses by 65 paise a litre and ₹1.25 per litre, respectively. After that, the prices of the two fuels remained frozen since September 5.

According to the people mentioned above, international crude oil prices rose on subdued US oil production in view of the Ida hurricane which tore through the Gulf of Mexico, and robust demand on optimism about global economic growth.