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

Roman Schwartz
September 4, 2018

Despite the euro remaining strong against the dollar, it could not stop fuel from rising. Petrol hit Rs 86.72 per litre in Mumbai, an increase of 16 paise from its Monday's price. The difference between the cost of petrol in Delhi and Mumbai has also widened to Rs 7.5 per litre due to difference in sales tax or VAT. "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. Oil minister Dharmendra Pradhan had attributed the sudden peak to the rise in worldwide crude prices and devaluation of the rupee.

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. 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. 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. Brent crude oil is now priced over $78 per barrel.

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He called it a "cultural tragedy". "We never got anything from the federal government", official, Luiz Duarte said. Representatives from the fire department did not immediately respond to a request for comment.

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 worldwide market and devaluation of the Indian rupee against the US Dollar were responsible for the hike in fuel prices in the country. This is the steepest increase in fuel prices since the daily revision in fuel prices was introduced in mid-June 2017. "Secondly, global currencies have weakened against the United States dollar", he said. Saudi Arabia, which is world's second largest oil producer, too is contributing to keep the prices on an upward trend.

The uptrend in petrol price hikes continued on Tuesday, with the fuel touching a fresh high across the country. This had also led to several transport unions holding agitations in July and demanding the government to bring petrol and diesel under the ambit of GST.

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