Fuel prices touch new high on low INR

Fuel prices touch new high on low INR

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.

In Kolkata, the price of petrol has been increased to ₹82.22 per litre while the diesel price has gone up to ₹74.19 per litre. Nearly half of the retail selling price of the two fuel is made up of central and state taxes.

More info to follow. There is a pressure on oil prices due to decrease in production.

According to a price notification of state-owned fuel retailers, petrol price was Tuesday hiked by 16 paise per litre and diesel by 19 paise.

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In Mumbai, the petrol was being sold at Rs 86.56/litre, up by Rs 0.31/litre - the highest ever for any metro city. However, it has been reported that efforts are on to bring petrol and diesel under the ambit of the Goods and Services Tax (GST), which could give some respite from rising fuel prices. If taxes are cut, prices will decline significantly, the senior Congress leader added. "Secondly, global currencies have weakened against the USA dollar", Pradhan had said in Surat.

The fuel prices have been increasing continuously since the beginning of August on the cue of rising crude oil prices and falling rupee against the U.S. dollar. "Public is unhappy with the rising fuel prices". Current account deficit (CAD) is already widening and an excise duty cut will disturb fiscal deficit (target).

Fuel prices vary from state to state due to local levies. Petrol price had previously hit its highest level five months ago on May 29. At the Interbank Foreign Exchange, the local currency opened at a record low of 71.24 against a dollar, down from its previous close of 71.21, and weakened further to trade at a fresh low of 71.37, down 16 paise. Also, crude oil has gained $7 a barrel in a fortnight, driven by fears that the United States sanctions on Iran will likely contract supplies.

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