Fuel prices hit all-time high, petrol Rs 86.56 per litre in Mumbai
04 September, 2018, 17:25 | Author: Corey Lynch
Fuel prices continued to rise on Monday, with petrol and diesel prices touching a new record high in several metropolitan cities, including Delhi and Mumbai. The prices of both petrol and diesel were raised by the Oil Marketing Companies (OMCs).
Petrol and diesel prices in Delhi have increased by 13% and 19% this calendar year so far.
In Delhi, the petrol price has been risen to a record ₹79. To reporters on the sidelines of a conclave organised in Surat, Pradhan said on Sunday that the factors responsible for drop in production of crude oil have caused a spike in fuel prices in India.
On Monday, the key transportation fuel was sold at Rs 71.15, Rs 74, Rs 75.19 and Rs 75.54 per litre in Delhi, Kolkata, Chennai and Mumbai respectively, up from Rs the previous levels of Rs 70.76, Rs 73.61, Rs 74.77 and Rs 75.12 per litre.
Former Finance Minister P Chidambaram slammed Bharatiya Janata Party (BJP)-led Centre for neglecting the historical rise in fuel prices and failing to implement any measures to contain the surge. Addressing a press conference, the Andhra Pradesh chief minister said that in addition to petrol prices, the rupee value would also touch Rs 100 against one United States dollar.
"Rupee is falling because of the trade war and rising oil prices". On that day, the rate in Mumbai was Rs 86.24 per litre. Due to sanctions on Tehran from the US, India had to reduce its imports from Iran, subsequently reducing the total fuel availability in the country. This year in May, Bank of America Merrill Lynch observed that the deteriorating conditions in Iran may push the crude oil prices to United States dollars 100. "Secondly, global currencies have weakened against the United States dollar", he said.
However, the official said that reducing excise duty on fuel will massively widen the fiscal deficit.
State-owned oil firms had in mid-June last year dumped the 15-year practice of revising rates on 1st and 16th of every month in favour of daily price revisions.
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