Petrol price to rise by 5 cents

Petrol price to rise by 5 cents

Petrol price to rise by 5 cents

It will get controlled.

In a media statement, the department said that South Africa had witnessed "sustained increases in fuel prices for the past few months, which placed a strain on the consumers".

Amongst all the four metro cities, petrol remains the cheapest in Delhi at Rs 79.15 while in Mumbai it is the highest at Rs 86.65, a sharp difference of Rs 7.5 per litre.

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.

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 U.S. sanctions begins.

The output from the OPEC rose by 220,000 barrels per day (BPD) in August to a 2018 high of 32.79 million bpd, a Reuters survey found.

The fall in rupee could be attributed to the surge in global oil prices, with crude oil gaining Dollars 7 a barrel in a fortnight driven by fears over US-China trade war and the US sanctions on Iran contracting supplies. If the current trend continues, both petrol and diesel prices will have a double digit price growth in the current fiscal year.

Petrol price had previously hit its highest level five months ago on May 29.

The opposition has also launched an attack on the BJP government over the rising fuel prices.

CNG now costs Rs. 42.60 per kg in Delhi and Rs 49.30 per kg in Noida, Greater Noida and Ghaziabad. This had also led to several transport unions holding agitations in July and demanding the government to bring petrol and diesel under the ambit of GST.

Also, there was a significant difference in price trajectories of petrol and diesel before the present government assumed office in 2014. With deregulation of diesel prices in 2014, no such option exists anymore.

"It needs to be kept in mind that the effect of rise in worldwide oil prices is not restricted to petrol and diesel prices alone, as even petrochemicals have a widespread use in the economy", said Himanshu (one name), an associate professor of economics at Jawaharlal Nehru University.

There are two factors that influence the price of petrol, namely external and internal.

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