An excise duty cut on fuel prices was to be likely announced on Wednesday after the Cabinet held meeting with Oil PSUs but no concrete step has been taken as yet and fuel prices are on a continuous rising spree. For the eleventh straight day on Thursday, petrol prices have increased higher by 30 paise while diesel has also scaled to a new high by surging 19 paise today.
With this hike, petrol in some 11 cities is now available at over Rs. 80 while diesel has also touched levels of Rs. 70 in as many as 15 cities. This clearly points to an imminent crisis that cannot be overlooked. The daily increase in petroleum products is weighing on inflation and in turn the government is bound to react to it in the upcoming monetary policy with an increase in interest rates by as much 25 basis point. 1 basis point is one-hundredth of a percentage point.
In New Delhi the price for petrol today is Rs. 77.47; Rs 80.12 in Kolkata; Rs 80.42 in Chennai; Rs 78.73 in Bengaluru; Rs 83.08 in Bhopal; Rs 80.50 in Gangtok; Rs 82.07 in Hyderabad; Rs 80.24 in Jaipur; Rs 82.71 in Jalandhar; Rs 82.94 in Patna; Rs 81.86 in Srinagar and Rs 81.62 in Trivandrum.While in Mumbai it is available for more than Rs. 85 for a litre.
Diesel in Delhi is priced at Rs. 68.53; Rs 71.08 in Kolkata; Rs 72.96 in Mumbai; Rs 72.35 in Chennai; Rs 69.71 in Bengaluru and Rs 74.49 in Hyderabad.
Oil PSUs even feel the pinch on the pockets of commuters with the daily price surge of fuel products is likely to spur panic situation which is quiet imminent.