Government blames falling rupee value fuel price hike. A litre of petrol costs maximum in Mumbai where it is available at Rs 86.56. The difference between the cost of petrol in Delhi and Mumbai has also widened to Rs 7.5 per litre due to difference in sales tax or VAT.
The recent slump in rupee also has lifted the import cost of crude oil, subsequently raising fuel prices.
Radebe said that the fuel price was driven by global factors - such as the rand exchange rate, the worldwide price of crude oil.
The Department of Energy Minister, Jeff Radebe on Monday announced fuel prices will remain unchanged. OPEC (Organisation of the Petroleum Exporting Countries) had promised that it will raise production by one million barrels per day, which was not raised. On September 1, 2018, Delhi woke up to the revised petrol and diesel prices, which were hiked by Rs 0.16 per litre and 0.34 per litre respectively.
The already high fuel prices continue to surge for 10th straight day.More news: Sloane Stephens turns back Victoria Azarenka, showing how far both have come
The fall in rupee could be attributed to the surge in global oil prices, with crude oil gaining United States dollars 7 a barrel in a fortnight driven by fears over US-China trade war and the US sanctions on Iran contracting supplies.
Prices of both petrol and diesel touched an all-time high figure following a 31 paise hike in fuel prices by oil marketing companies today. There is a pressure on oil prices due to a decrease in production.
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. "Secondly, global currencies have weakened against the United States dollar", he said.
Diesel rates had hit Rs 69.31 a litre on May 28, but this record was breached on August 27 and on Monday they hit a fresh high.