Diesel rates on Monday were hiked by 39 paise a litre, the steepest increase since the daily revision in prices was introduced in mid-june 2017. In Delhi, Indraprastha Gas Ltd raised the prices of CNG by 63 paise per kg, costing Rs 42.60 per kg in Delhi and Rs 49.30 per kg in Noida, Greater Noida and Ghaziabad.
In Chennai, petrol price rose 17 paise/litre to Rs 82.41/litre. In Mumbai, the price petrol touched Rs 86.56 a litre - an increase by Rs 0.58/litre - and diesel to Rs 75.54/litre - an increase by Rs 0.44/litre, respectively.
This takes the worldwide price of crude oil and the value of the rand against the dollar into account. The petrol prices in Kolkata and Chennai are Rs 82.22 per litre and Rs 82.41 per litre respectively. OPEC had said to increase the production of oil by one million barrel per day but it has been two months (July and August) but they have not done this so far. The surge in fuel prices can be largely attributed to the spike in global crude prices.
"Apart from that, crises in countries like Venezuela and Iran are increasing".
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 United States sanctions begins. There is a pressure on oil prices due to decrease in production.
"Dear Modiji, please show some kindness on a festival day.Your jumlas are not taxed, but when will you reduce the tax on petrol-diesel? Secondly, global currencies have weakened against the United States dollar", he said. Oil company officials said price rise over two weeks has been mainly due to fluctuations in the rates of global crude and a further weakening of the rupee vis-a-vis the dollar.