Fuel price hike continues on Day 12: Petrol at 85.65 in Mumbai, Diesel at 73.20

Despite growing resentment and opposition, fuel prices rose for the 12th day straight on Wednesday, with petrol crossing an all-time high of Rs 85.6 in Mumbai.

The price of petrol was hiked by 36 paise and diesel was hiked by 24 paise today according to Indian Oil Corporation Ltd. data. With the hike, the per litre cost of petrol touched Rs 85.65 in Mumbai and diesel rose to Rs 73.20.

The cost of petrol and diesel has been hiked by Rs 3 and 2.77 respectively since May 14, following the 19-day temporary suspension in the wake of Karnataka elections.

Union Minister for Petroleum and Natural Gas Dharmendra Pradhan on Thursday said that the reduced value of the Indian rupee in comparison to the US dollar is causing fuel price hike.

“It is due to various circumstances in international (oil) market and mainly the value of Indian Rupee has reduced in comparison to US Dollar, which has led to a surge in oil prices. We are trying to control the prices,” Pradhan told ANI.

When asked whether petrol and diesel would be brought under the ambit of Good and Services Tax (GST), Pradhan stated that the aspect was under consideration.

“The Centre has taken this (fuel hike) under consideration. I am confident that we can find a way, where common people will not be affected by such fuel hikes,” Pradhan replied to a query on the Centre’s move to curb steep fuel hike prices.

He further said that the Centre under Prime Minister Narendra Modi will soon take quick measures to give some relief to the common people from the sky-rocketing fuel prices.

“See, there are a lot of investments by stakeholders. There are various factors under consideration like – the current scenario of international oil markets, the valuation and devaluation of Indian Rupee and US Dollar and so on. We don’t see only one factor. We are trying our best to give some relief to the common people,” he said.

Yesterday, Congress President Rahul Gandhi also dared Prime Minister Modi for a fuel challenge. Rahul took a jibe at the Prime Minister after he accepted an online fitness challenge posed by Indian Cricket captain Virat Kohli.

Rahul took to Twitter and urged Prime Minister Modi to take up the ‘fuel challenge’ and reduce the skyrocketing fuel prices.

“Dear PM, Glad to see you accept the @imVkohli fitness challenge. Here’s one from me: Reduce Fuel prices or the Congress will do a nationwide agitation and force you to do so. I look forward to your response,” he tweeted.

Dear PM,

Glad to see you accept the @imVkohli fitness challenge. Here’s one from me:

Reduce Fuel prices or the Congress will do a nationwide agitation and force you to do so.

I look forward to your response.#FuelChallenge

— Rahul Gandhi (@RahulGandhi) May 24, 2018

Currently, workers of various opposition parties including Congress, All Assam Students’ Union (AASU), Trinamool Congress (TMC), Nationalist Congress Party (NCP), and Biju Janata Dal (BJD) are staging protests in various parts of the country over fuel prices.

Analysts believe that the less production of oil in the OPEC (Organisation of the Petroleum Exporting Countries) and hike in crude oil price in the international market are some of the factors affecting the fuel price.