Fuel prices set new records on Monday as Petrol price was raised 23 paise a litre and diesel by 22 paise per litre. Petrol and diesel prices have continued their upward march on fall in rupee and surge in global crude oil rates. On Monday, the increase pushed the petrol price in Mumbai to Rs 88.12 per litre and diesel rate touched its highest level of Rs 77.32 a litre. In Delhi, petrol price rose to Rs 80.73 per litre and diesel cost rose to Rs 72.83 a litre.
Yesterday the petrol and diesel prices were hiked by 12 paise and 10 paise a litre respectively. According to experts, a weak rupee and high excise duty have been major factors for the rise in fuel prices. On the currency front, the Indian rupee settled above Rs 71 to dollar in the spot market for the week ended on Friday. It closed at 71.73, stronger by 26 paise than its previous close of 71.99 per greenback.
The rising diesel price is expected to flare up inflation as the fuel is primarily used to transport most of the goods including agriculture products. As per the country’s pricing mechanism, the domestic fuel prices are dependent upon the international fuel prices on a 15-day average and the value of the rupee.
(Inputs from Agencies)
