Published: Tue, May 29, 2018
Money | By Bruce West

No end in sight as fuel price surges for 13th day

No end in sight as fuel price surges for 13th day

The prices went up by around 15 paise; rates in metro cities now are Rs 78.43 (Delhi), Rs 81. While the price of diesel in Delhi is Rs 69.31/litre and it is Rs 73.79/litre in Mumbai. Rs 86.24 (Mumbai) and Rs 81.43 (Chennai), according to the Indian Oil Corporation (prices at bunks of other fuel companies may vary by a few paise).

In addition, price in Kolkata inched up to Rs 80.76, against 80.61 per litre on the previous day.

The government is planning a "holistic strategy" to find "long-term solution" to a spike in petrol and diesel prices triggered by a spurt in worldwide rates, Oil Minister Dharmendra Pradhan said on Monday. The revised prices are applied at the fuel stations with effect from 6 am every day.

While the price of petrol rose by 16 paise (0.2 per cent) to reach Rs 78.95 in Gurgaon, price in Faridabad also increased by 16 paise (0.2 per cent) to Rs 79.19, by 12 paise (15 per cent) to Rs 78.75 in Ghaziabad, and by 13 paise (0.17 per cent) to Rs 78.87 in Noida. The most expensive is the Netherlands, where drivers pay £1.47 per litre of petrol. However, Bihar Deputy Chief Minister Sushil Kumar Modi on Sunday said that "it is a big misconception (among the people) that price of petroleum products will be reduced significantly if they are brought under GST ambit".

As the Centre has come under fire over the fuel price hike, Union Petroleum and Natural Gas Minister Dharmendra Pradhan earlier assured the public that the government will soon come out with a solution to tackle the situation. Addressing the furore over fuel price hike, Shah had said that the government officials were taking the issue of fuel price hike seriously. "This is the most plausible scenario under the current circumstances", the SBI report said.

He said: "Central government saves Rs 15 on every litre of petrol due to fall in crude oil prices".

Fuel prices continue to touch another peak for the 16th consecutive day, with petrol being sold at Rs 78.43 per litre in Delhi and Rs 86.24 per litre in Mumbai. Simply passing on higher prices to consumers will certainly hurt its prospects in the election next year. "The Centre is working out a plan to control the increase in fuel prices", he added.

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