Energy department intervenes to keep petrol price increase down

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The price of petrol increased to a new all-time high of Rs 86.72 per litre in Mumbai on Tuesday, increasing 16 paise from the day before.

Fuel prices continued to rise on Sunday, with petrol and diesel prices touching a new record high in several metropolitan cities, including Delhi and Mumbai.Earlier also Pradhan had said the rise in crude oil price in the global market and devaluation of the Indian rupee against the US Dollar were responsible for the hike in fuel prices in the country.

However, petrol will increase by 5 cents-per-litre on Wednesday.

Petrol price in Delhi rose to a record ₹79.15 a litre and diesel climbed to a fresh high of ₹71.15, according to price notification of State-owned fuel retailers. There are reports that the devaluation of the Indian rupee against the USA dollar and hike in crude oil price in the global market could be the two reasons behind the persistent fuel price hike.

CPI (M) politburo member Md Salim said, "The BJP had promised to cool down petrol and diesel prices in its manifesto but now they are trying to justify the steep, record-breaking prices of petro-products". This came at a time when India's crude oil imports from Iran had increased by 52 percent in June 2018. "I would like to mention two points, and both these subjects are external".

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Domestic credit rating agency Icra said in a report on Monday that global oil prices have risen by about 10 per cent over the past two weeks on declining inventories and faster than anticipated decline in Iranian exports as the countdown to the enforcement of U.S. sanctions begins. "Apart from that, crises in countries like Venezuela and Iran are increasing".

Government blames falling rupee value fuel price hike. There is a pressure on oil prices due to a decrease in production.

Petroleum prices, which are determined by the cost of crude oil in global markets, may continue to go up as the worldwide markets are under pressure due the United States sanctions on Iran and Saudi Arabia's decision to cut oil production. "Secondly, global currencies have weakened against the USA dollar", he had said.

Trend of diesel prices since the beginning August.

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