Fuel price surge continues; petrol touches new all-time high of Rs 86.56 per litre in Mumbai

Fuel prices have continued to march upwards touching new all-time highs on Monday. The price in most metro cities has continued to surge with the petrol touching Rs 86.56 per litre and diesel touching Rs 75.54 per litre in Mumbai.

Prices in the capital city are Rs 79.15 for petrol and 71.15 for diesel. In Kolkata and Chennai, petrol rules at 82.06 and Rs 82.24 respectively and diesel at Rs 74.00 and Rs 75.19, respectively.

These prices vary significantly from state to state depending on various tax levies and cess. The surge in fuel prices can be largely attributed to the spike in global crude prices.

Earlier, fuel prices were revised on the 1st and 16th of every month. Mid-June, last year, oil companies started revising fuel prices on a daily basis with new prices becoming effective at 6 am every morning.

Dharmendra Pradhan, Union Petroleum and Natural Gas Minister, said that "external factors" are responsible for the price rise.

“I would like to mention two points, and both these subjects are external. Organisation of the Petroleum Exporting Countries (OPEC) had promised that it will raise production by one million barrels per day, which was not raised. Apart from that, crises in countries like Venezuela and Iran are increasing. There is a pressure on oil prices due to a decrease in production. Secondly, global currencies have weakened against the US dollar,” he said while speaking to reporters at a conclave held in Surat.

Rising crude prices have contributed to the weakening of the Indian rupee against the dollar which stood at an all-time low of 71 to the dollar.