Following the recent spurt in oil prices to well over $50 a barrel, state-run Indian Oil Corp (IOC) hiked prices of petrol by 42 paise a litre, and of diesel by Rs 1.03, both in Delhi and effective from Monday, with corresponding increases in other states.

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“The current level of international product prices of petrol and diesel and the INR-USD exchange rate warrant increase in selling price of petrol and diesel, the impact of which is being passed on to the consumers with this price revision,” IOC said in a release here late Sunday.

Petrol per litre now costs Rs 71.14 in Delhi, Rs 73.66 in Kolkata, Rs 77.96 in Mumbai and Rs 70.61 in Chennai.

Similarly, the new diesel price is Rs 59.02 in Delhi, Rs 61.27 in Kolkata, Rs 64.89 in Mumbai and Rs 60.73 in Chennai.

Rates were last hiked on January 1, petrol by Rs 1.29 a litre, and diesel by Rs 97 paise, both in Delhi, with corresponding changes in other states.

With oil producers outside the Organisation of the Petroleum Exporting Countries (OPEC), led by Russia, agreeing to reduce output by 558,000 barrels per day (bpd) last month, global oil prices surged to an 18-month high.

This came in the wake of the 13-nation OPEC cartel’s November 30 decision to cut output by 1.2 million bpd for six months effective January 1.

It is the first time since 2001 that OPEC and some of its rivals reached a deal to jointly reduce output in order to tackle the global oil glut.

As per available data, the Indian basket, comprising 73 per cent sour-grade Dubai and Oman crudes, and the balance in sweet-grade Brent, closed trade on January 12 at $53.95 for a barrel of 159 litres.

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