The revised petrol price in the city was Rs 82.22/litre and Rs 74.19/litre, respectively. In Mumbai, the price petrol touched Rs 86.56 a litre - an increase by Rs 0.58/litre - and diesel to Rs 75.54/litre - an increase by Rs 0.44/litre, respectively. The price of the fuel rose by the same amount in Delhi to Rs 79.31, and in Kolkata it costs Rs 82.22 a litre. There are reports that the devaluation of the Indian rupee against the U.S. dollar and hike in crude oil price in the global market could be the two reasons behind the persistent fuel price hike.
With the updated prices, the petrol and diesel prices are continuing to haunt the citizens with its rising value. Brent crude oil is now priced over $78 per barrel. "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.
"As for the Rupee, it has depreciated by about 11 per cent against the United States dollar since the beginning of this calendar year owing to its sensitivity to crude oil prices and significant outflows of foreign investment". "Apart from that, crises in countries like Venezuela and Iran are increasing".
State-owned oil firms had in mid-June last year dumped the 15-year practice of revising rates on 1st and 16th of every month in favour of daily price revisions. There is a pressure on oil prices due to a decrease in production.
The already high fuel prices continue to surge for 10th straight day. "Secondly, global currencies have weakened against the U.S. dollar", Pradhan had said in Surat.
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.
Also, crude oil has gained $7 a barrel in a fortnight, driven by fears that the United States sanctions on Iran will likely contract supplies.