Fuel prices hit all-time high, petrol Rs 86.56 per litre in Mumbai
04 September, 2018, 17:26
But the Opposition launched a fresh offensive on the government over the hike in fuel prices.
In Delhi, petrol costs Rs 79.31 per litre and diesel Rs 71.34 today.
The fuel prices have been increasing continuously since the beginning of August on the cue of rising crude oil prices and falling rupee against the U.S. dollar.
The central government had raised excise duty on petrol by Rs 11.77 a litre and that on diesel by 13.47 a litre in nine instalments between November 2014 and January 2016 to shore up finances as global oil prices fell, but then cut the tax just once in October a year ago by Rs 2 a litre. The Congress is also in touch with the other parties as it plans to take on the Narendra Modi government over rising fuel prices.
Diesel, too, hit a new high of Rs 75.54/litre in Mumbai and Rs 71.15 per litre in Delhi on Monday. Officials said the spike in rates is on account of exchange rate falling to a record Rs 71 to a dollar, depreciating by Rs 2.5 in a month.
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Diesel prices gain significance as the fuel is used in the transportation of farm products and a rise in the prices may push up inflation. "I would like to mention two points, and both these subjects are external". The price of crude oil went up to $78.05 per barrel on Tuesday from $77.37 per barrel on Monday.
Since August 2018, petrol prices have gone up by Rs. 2 per litre, while diesel prices been hiked by Rs. 2.42 per litre. "OPEC (Organisation of the Petroleum Exporting Countries) had promised that it will raise production by one million barrels per day, which was not raised", he told reporters in Surat on Sunday. "Secondly, global currencies have weakened against the USA dollar". There is a pressure on oil prices due to decrease in production.
Delhi chief minister Arvind Kejriwal on Monday said the government had made a "mess" of the economy.
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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