Energy department intervenes to keep petrol price increase down

Petrol price,diesel price,petrol price today

Fuel prices hit all-time high, petrol Rs 86.56 per litre in Mumbai

In Delhi, the petrol price is at Rs 79.15/litre (increase by Rs 0.31/litre) and diesel at Rs 71.15/litre (increase by Rs 0.39/litre).

As petrol and diesel rates continued to soar on Monday after reaching a record high a day earlier, school bus operators indicated there could be a hike in bus fees from the second semester in October.

The appreciation of dollar against rupee has also pushed up rates for compressed natural gas (CNG) as well as piped natural gas (PNG) since the price of gas procured by city distributors is mostly dollar-denominated.

The prices of petrol and diesel touched a new high on Tuesday with Mumbai paying the maximum among the four metros. State-run oil companies increased the price of petrol by 16 paise and that of diesel by 19 paise a litre today.

Diesel per litre is priced at Rs 71.34 in Delhi, Rs 74.19 in Kolkata, Rs 75.74 in Mumbai and Rs 75.39 in Chennai.

"Given the weakness in the rand in the last couple of days and the rise in the oil price to above $78 a barrel, you would have thought that they would have needed to increase it".

With the updated prices, the petrol and diesel prices are continuing to haunt the citizens with its rising value.

"I would like to mention two points, and both these subjects are external".

Domestic credit rating agency Icra said in a report on Monday that global oil prices have risen by about 10 per cent over the past two weeks on declining inventories and faster than anticipated decline in Iranian exports as the countdown to the enforcement of U.S. sanctions begins. 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. "OPEC (Organisation of the Petroleum Exporting Countries) had promised that it will raise production by one million barrels per day, which was not raised". There is a pressure on oil prices due to a decrease in production. "Centre and states must act together and bring petrol and diesel under GST", he added. Apart from crude oil prices in the global market and the weakening rupee, one of the factors affecting fuel prices is the high value added tax (VAT) in the state of Maharashtra.

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