Petrol At A Record High, Oil Minister Blames Falling Rupee: 10 Points

Petrol diesel prices not hiked today – but record highs continue

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

The rupee, which lost 10 paise against the U.S. dollar in late afternoon trade on Monday, ended at a new record low of 71.10. After the hike on Tuesday, the total increase in petrol prices is around Rs 2.50 per litre, while for diesel it has crossed Rs 3 per litre in last one month.

In Kolkata, Chennai and Mumbai, the fuel was priced at Rs 82.06, Rs 82.24 and Rs 86.56 per litre, respectively, all a new record, against Rs 81.76, Rs 81.92, Rs 86.25 on Sunday. "The situation in Iran has also made situation tensed and they are also a factor for the hike in fuel prices", he said.

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Meanwhile, Union Minister for Petroleum and Natural Gas Dharmendra Pradhan last week blamed the "isolated" policies of the U.S. for the "abnormally" rising fuel prices in the global markets.

Explaining the causes behind the recent hike in fuel prices, the Minister said: "I would like to mention two points, and both these subjects are external". Diesel prices reached an all-time high on May 29 at Rs 73.79 in Mumbai, Rs 69.31 in Delhi, Rs 71.86 in Kolkata, and Rs 73.18 in Chennai. There is a pressure on oil prices due to a decrease in production. This came at a time when India's crude oil imports from Iran had increased by 52 percent in June 2018.

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Also, crude oil has gained $7 a barrel in a fortnight, driven by fears that the United States sanctions on Iran will likely contract supplies.

Petrol and diesel prices continue to rise hitting fresh record high today. Since then, the fuel prices have been revised with effect from 6 am on a daily basis. "Secondly, global currencies have weakened against the U.S. dollar". Indraprastha Gas Ltd (IGL) has raised the prices of CNG by 63 paise per kg and by Rs 1.11 per standard cubic meter for piped natural gas supplied to households for cooking purposes. While Mumbai has the highest VAT (Value Added Tax) of 39.12 per cent on petrol. Delhi charges a VAT of 27 per cent on petrol and 17.24 per cent on diesel.

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