Energy department intervenes to keep petrol price increase down

Andrew Cummings
September 3, 2018

As per sources, the fuel prices have increased by around Rs 5 per litre in the past 7 months. The prices of both petrol and diesel were raised by the Oil Marketing Companies (OMCs).

Petrol is being sold Rs.0.31 higher at Rs 79.15 per litre, while diesel prices have been hiked by Rs.0.39 to Rs 71.15 per litre. Fuel prices in the USA are still lower than most of the European countries like the United Kingdom, the Netherlands, Amsterdam, Norway and Sweden. In Kolkata, diesel has touched Rs 74 per litre. Pakistan is facing the biggest battle of bringing the country's crumbling economy back on its track, but rising fuel prices may play spoilsport. Diesel was at Rs 75.54/litre, up by Rs 0.44/litre. The country recently introduced the monthly pricing formula to compensate the prices as per the global crude oil price variation.

Diesel rates had hit Rs 69.31 a litre on May 28, but this record was breached on August 27 and on Monday they hit a fresh high.

The rupee was trading at Rs 70.83 against the U.S. dollar in opening trade on Monday.

Fuel prices continued to rise on Sunday, with petrol and diesel prices touching a new record high in several metropolitan cities, including Delhi and Mumbai.Earlier also Pradhan had said the rise in crude oil price in the global market and devaluation of the Indian rupee against the US Dollar were responsible for the hike in fuel prices in the country. China is the world's largest crude oil importer since 2017. "This is a once off temporary intervention to provide some relief to motorists and consumers against fuel price hikes", the department said in a statement.

Like other European countries, the United Kingdom imposes a huge tax on commercial fuel, which makes up for over 70 per cent of the cost of a gallon of gasoline. On that day, the rate in Mumbai was ₹86.24 per litre.

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