Fuel prices in the country haven't seen a day of fall since 15 August 2018, causing a Rs 5 per litre hike in petrol rates during the period. Petrol prices per litre were increased once again today to Rs 90.75 in Mumbai (up by 18 paise), Rs 83.40 in Delhi (up by 18 paise), Rs 86.70 in Chennai (up by 19 paise) and Rs 85.21 in Kolkata (up by 18 paise). Diesel prices per litre were hiked to Rs 79.23 in Mumbai, Rs 74.63 in Delhi, Rs 78.91 in Chennai, Rs 76.48 in Kolkata.
In around 20 districts of Maharashtra, petrol costs more than Rs 90, on account of local and state taxes. Its state government recently said that it cannot reduce the taxes as a Rs 1 per litre reduction in fuel prices would mean Rs 2,200 crore drop in annual revenue.
Further, Petroleum Minister Dharmendra Pradhan said that reduction in taxes in these petroleum products wouldn't really help the consumers in the long run as these prices are being raised due to the surging international crude rates and the conditions of the oil market still remain volatile.
On Friday alone, Brent crude future rose by over 1 percent to hit $82.87/ barrel during the session, its highest since November 2014. The rates have been climbing due to the global market's reaction to approaching deadline over US sanctions on Iran.
The sanctions are set to kick-in in the month of November, and the Trump administration has demanded the importers of Iranian oil to cut their imports to zero. This will, in turn, reduce the global oil supply, as the OPEC (Organisation of Petroleum Exporting Countries) has not agreed to increase their outputs, as of their last meeting on 23 September to compensate for the shortage.