Fuel prices hit all-time high, petrol Rs 86.56 per litre in Mumbai

Petrol price,diesel price,petrol price today

Petrol price,diesel price,petrol price today

The rupee collapsed to a new lifetime low of 71.21 against the United States dollar, while petrol prices rose to a new high of Rs 86.56 a litre in Mumbai on Monday.

The recent slump in rupee also has lifted the import cost of crude oil, subsequently raising fuel prices. On that day, the rate in Mumbai was Rs 86.24 per litre.

The prices of CNG and piped natural gas (PNG) were also hiked in metro cities since the price of gas procured by city distributors is mostly dollar-denominated. In Delhi, petrol was selling at Rs 79.31 per litre while the diesel was being sold at Rs 71.34 per litre.

India imports about 80% of its crude oil, and the falling Indian rupee will make the imports costlier and lead to a rise in fuel prices. Petrol price had previously hit its highest level five months ago on May 29.

Fuel prices have been on a continuous rise for the past 10 days. On that day, the rate in Mumbai was Rs 86.24 per litre.

Over 99% of demonetised notes were returned: RBI
Political parties were quick to corner the BJP-led Narendra Modi government that demonetised high-value currency notes to curb black money.

The fuel prices are likely to go up further as the rupee hit yet another all-time low of ₹71.18 against the USA dollar on Monday, compared to the previous close of ₹70. Due to sanctions on Tehran from the US, India had to reduce its imports from Iran, subsequently reducing the total fuel availability in the country.

Energy minister Jeff Radebe said this week that they had taken a once-off decision to only factor in a retail margin increase of 4.9c per litre of petrol for the month. "This is further hurting Asian currencies", the official said.

Delhi chief minister Arvind Kejriwal on Monday said the government had made a "mess" of the economy.

Moreover, the price of crude oil has risen by $7 a barrel in the past two weeks due to the growing fears that the USA sanctions on Iran might reduce the supplies. Brent crude oil is now priced over $78 per barrel. Besides, states levy a value-added tax (VAT), the lowest being in Andaman and Nicobar Islands where a 6% sales tax is charged on both the fuel.

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