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

Since 16 August petrol prices have risen by over ₹ 2 per litre. Diesel prices have risen by ₹ 2.42 a litre during this period

Petrol, diesel prices at highest-ever levels on rupee woes

On that day, the rate in Mumbai was ₹86.24 per litre.

Thanks to that intervention, the price a litre of 95-octane petrol will go up on Wednesday from R15.44 to R15.49 at the coast and from R16.03 to R16.08 in Gauteng.

These prices vary significantly across states depending on various tax levies and cess.

The only increase that will be factored into the price for September is a retail margin increase of 4.9c per litre, to be placed on the retail price on 5 September 2018.

A litre of petrol in Mumbai costs ₹86.56 on Monday.

Petrol and diesel in Kolkata will now cost an additional 16 paise/litre and 19 paise/litre, respectively. He also said that the factors responsible for drop in production of crude oil have caused a spike in fuel prices in India. "I would like to mention two points, and both these subjects are external". There is a pressure on oil prices due to a decrease in production. "Secondly, global currencies have weakened against the United States dollar", he said.

The opposition has also launched an attack on the BJP government over the rising fuel prices. "In Expectation -Distressed People", Congress' chief spokesperson Randeep Singh Surjewala tweeted, referring to the festival of Janmashtami.

Petrol price had previously hit its highest level five months ago on May 29. "Where are we heading to?" Brent crude oil is now priced over $78 per barrel. 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.

Officials said the spike in rates was on account of the exchange rate falling to a record Rs 71 against the U.S. dollar, depreciating by Rs 2.5 in a month. The rupee's previous record low was 71, marked on August 31.

Petroleum prices, which are determined by the cost of crude oil in global markets, may continue to go up as the worldwide markets are under pressure due the United States sanctions on Iran and Saudi Arabia's decision to cut oil production.

The retail price of LPG will also remain unchanged.

CNG now costs Rs. 42.60 per kg in Delhi and Rs 49.30 per kg in Noida, Greater Noida and Ghaziabad. The consumer price of PNG to the households in Delhi has been increased to ₹28.25 per scm, while same in Noida, Greater Noida and Ghaziabad would be ₹30.10 per scm, which has been increased by ₹1.26 per scm.

Meanwhile, Maharashtra transporters, burdened with diesel price hikes for a fortnight, have threatened to agitate and increase freight rates by 10-15% if there is no control or reduction in rates.

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.

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