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

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

In Delhi, the petrol price touched Rs 79.15 per litre which is an increase by Rs 0.31/litre. This is not only a new high for the city-the last recorded all-time high was Rs 86.24 on May 29-but also the steepest in any of the other major metro cities. Petrol prices shot up by over 30 paise on Monday.

Petrol and diesel prices in the country touched their highest levels on Monday mainly due to dramatic fall in rupee and a sharp rise in crude oil rates.

"This is a once off temporary intervention to provide some relief to motorists and consumers against fuel price hikes".

The excise duty has remained unchanged for the past four months but the Value-Added Tax applied on diesel today is Rs 10.12 per litre and that on petrol is Rs 16.42 per litre.

A litre of petrol in Mumbai costs Rs?86.56 on Monday. Mumbai is paying the most, with petrol at Rs 86.56 a litre and diesel at 75.54 litre.

The effect of rising crude oil prices in the global market has also contributed to the weakening of the Indian Rupee which sank to Rs 71 per U.S. dollar days ago.

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On Wednesday fuel prices will increase by just 4.9c per litre, the Department of Energy (DoE) announced on Monday.

Transporters have threatened to increase freight rates by 10-15% if there is a further hike in diesel price.

Officials said the spike in rates is on account of exchange rate falling to a record Rs 71 to a dollar, depreciating by Rs 2.5 in a month.

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.

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

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