Fuel prices touch record highs across India
What's the story
Petrol prices in Delhi touched a three-year high yesterday, with every liter costing Rs. 71.56. The previous record was Rs. 73.60 in July'14. The same day, the per-liter price was Rs. 79.44 in Mumbai, Rs. 74.20 in Chennai and Rs. 74.28 in Kolkata, marginally less than their previous highs. Diesel prices also rose similarly, thanks to global factors like production curbs and high demand.
Data
Diesel prices break all-time records in Delhi, Kolkata, Chennai
In Delhi, diesel cost an all-time high of Rs. 62.25. Similar records were broken in Kolkata and Chennai too, at Rs. 64.91 and Rs. 65.63 per liter respectively. In Mumbai, diesel cost Rs. 66.30 a liter, the highest since August'14 when it hit Rs. 66.63.
Factors
A combination of factors have led to the rising costs
Fuel prices have risen globally to $70 a barrel on the back of increased demand and production restrictions. In India, the daily price revision policy ensures changes in rates are reflected immediately rather than after 15 days. There's been a rise in the Indian basket of imported crude oil too. Petroleum products aren't included in GST either, and prices vary at different locations.
Government
'We're keeping a watch,' says Oil Min, but no action
Oil Minister Dharmendra Pradhan remained non-committal, merely saying the government is keeping a watch. He clarified taxes come under the finance ministry, but didn't say whether he had talked to them to reduce excise duty. Fuel prices have been rising since December 15, 2017. The NDA government has cut excise duty just once, but prices have touched new highs afterwards.