Published: Sat, April 21, 2018
Economy | By Melissa Porter

Fuel prices expected to rise by Rs5 per litre next month

Fuel prices expected to rise by Rs5 per litre next month

Senior Congress leader P Chidambaram also lashed out at the Modi government over the steep increase in fuel prices and said it has become clueless and floundering and is living off an oil bonanza. Similarly, diesel prices rose high in Delhi, Kolkata, Mumbai and Chennai and the prices were recorded as Rs 65.31, Rs 68.01, Rs 69.54 and Rs 68.90 per litre respectively.

Petrol prices in the city are fast heading towards Rs 80 per litre. "Then, why does the BJP government refuse to bring petroleum and petroleum products under GST?"

Under the scheme, the price of fuel is revised daily on the basis of the global price of crude oil and the rupee/dollar exchange rate. I don't see crude oil prices rising from here on.

The fuel prices have been consistently increasing since August 2017. "Instead it should start coming down", Sanjiv Bhasin, executive vice president, markets at IILF told The Hindu. Other metro cities such as Kolkata, Mumbai and Chennai too witness new multi-year highs at Rs 76.78, Rs 81.93 and Rs 76.85 per litre respectively, the Indian Oil website said.

Oil prices in the global market on Thursday jumped to three-years high as USA crude inventories declined and the world's top exporter Saudi Arabia pushes for higher prices by continuing to curtail supplies. We voluntarily can't reduce the prices.

In the national capital Delhi, the petrol is retailing at Rs 74.08/litre. It is worth mentioning that govt had reduced the oil price by Rs 2 last month, however, an increase for the month of May would apparently be disastrous owing to the month of Ramazan. He blamed the ruling dispensation's "Tax the Consumer" policy. Higher fuel prices are pushing up inflation at a time when prices of food items such as pulses have come down.

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