Petrol, Diesel Prices Sky-Rocket As Rupee Continues To Fall
New Delhi: Petrol and diesel prices continued the upward climb and touched their highest levels on Monday due to drastic fall in the value of Indian rupee and a steep increase in global crude oil prices.
The price of petrol in the national capital Delhi rose to a record Rs. 79.15 a litre and diesel climbed to a fresh high of Rs 71.15. This was followed by 31 paise/litre hike in prices on September 3. Rates have breached the previous high of Rs 78.43 a litre on May 28. Diesel rates on Monday were hiked by 39 paise a litre, the steepest increase since the daily revision of prices was introduced in mid June 2017.
Since August 16, petrol prices have risen by over Rs 2 per litre. Diesel prices on the other hand have risen by Rs 2.42 a litre during the period.
The prices of fuels vary from state to state due to local levies. Prices in Delhi are the cheapest in all metros and most state capitals due to lower sales tax or VAT. The appreciation of dollar against the Indian currency has also increased the rates of Compressed Natural Gas (CNG) as well as Piped Natural Gas (PNG) since their price is mostly dollar-denominated.
The Government has said that the spike in fuel prices is because of the exchange rate of Indian Rupee falling to a record Rs 71 against a US Dollar, depreciating by Rs 2.5 in a month.
Furthermore, global crude oil prices surged by $7 a barrel in a fortnight, instigated by fears that the U.S. sanctions on Iran will likely decrease supplies.