Petrol and diesel prices were hiked on Tuesday for the 16th day in a row even as oil prices were mixed. The fuel prices were hike 15-16 paise on Tuesday. According to Indian Oil website, petrol price in Delhi is Rs 78.43 a litre; Kolkata Rs 81.06 a litre; Mumbai Rs 86.24 a litre; Chennai Rs 81.43 a litre. Diesel price in Delhi is Rs 69.31 a litre; Kolkata Rs 71.86 a litre; Mumbai a 73.79 litre; Chennai a litre 73.18. In Mumbai, the price rose beyond the Rs 86 mark on Monday.
Meanwhile, oil prices were mixed but remained under pressure from expectations that Saudi Arabia and Russia would pump more crude to ease a potential shortfall in supply. Brent crude futures were up for the first time after settling at their lowest since May 8 at $75.30. US WTI (West Texas International) was down $1.05, or 1.55 percent, at $66.83 a barrel, sitting around its lowest since April 17. Saudi Arabia and Russia have discussed raising OPEC and non-OPEC oil production by some 1 million barrels per day to make up potential supply shortfalls from Venezuela and Iran.
Back home, while there has been no respite from rising fuel prices, the government is mulling ways to keep fuel prices in check. Union Petroleum and Natural Gas Minister Dharmendra Pradhan earlier assured the public that the government will soon take out a solution to tackle the situation. An SBI report said that states can cut petrol price by Rs 2.65 per litre and diesel by Rs 2 a litre if they decide to forego potential additional gains out of high crude oil rates.
Petrol and diesel prices began surging after a 19-day hiatus ahead of Karnataka polls. To provide relief to people, BJP leaders Devendra Fadnavis and Nitin Gadkari have advocated for bringing petrol and diesel under the ambit of Goods and Services Tax (GST). The government earlier this week said that a plan is being worked to control the frequent fuel price volatility.
“Petrol and diesel should have been brought under the Goods and Services Tax. I asked officials during a presentation if we bring fuel prices under GST will it benefit the states or not. They said ‘yes’, they will benefit,” Gadkari said at a recent conclave.
