For diesel and petrol, it’s a record a day every day now. On Saturday, petrol touched the all-time high price since 2013. On Sunday, it beat its previous day’s record. On Monday, it created a new all time high record in Delhi and Mumbai by touching Rs 76.57 and Rs 84.40, respectively.
As the prices of petrol and diesel continued to soar high on Tuesday, the public requested the government to reduce the price as it’s affecting their budget.
We continue to witness a rising trend in fuel prices of India, and Tuesday was no different as the state-owned OMCs raised petrol prices between 29 paise to 32 paise per litre in various state capitals of India. Cities like Mumbai, Kolkata, New Delhi and Chennai are seeing this product hitting over 5-year highs.
Prime Minister Narendra Modi and the rupee face a similar predicament — old foes have re-emerged to keep them in check.
Union Minister for Petroleum and Natural Gas Dharmendra Pradhan said that they have appealed to the Odisha government to reduce the tax on petrol and diesel for the benefit of people.
With global crude oil prices hovering at record high levels, India is staring at a ballooning of fuel subsidies up to Rs 53,000 crore in the current financial year ending March 2019. State-owned Oil and Natural Gas Corp (ONGC) and Oil India (OIL) may have to bear a large part of the burden impacting their financials, according to Moody’s Investors Service.
Soon after global crude oil prices hit $80 a barrel, the government said it expected an increase of $25-50 billion in the import bill for 2018-19. That could lead to an oil import bill of $130-155 billion. India’s crude oil import bill for 2018-19 was estimated at $105 billion, according to the petroleum ministry’s Petroleum Planning and Analysis Cell (PPAC).
L&T Hydrocarbon Engineering in consortium with TechnipFMC has bagged two orders from Hindustan Urvarak and Rasayan Ltd for setting up two fertilizer plants.
Though taxes are around 100% of the ‘base price’ of petrol or half the retail price (the case of diesel is comparable) and both the Centre and state governments treat the two auto fuels as a milch cow, it is only the states that benefit from a spike in their prices.
Rise in oil prices may lead to inflationary trends in the country, forcing the Reserve Bank of India (RBI) to hike rates by 0.25 per cent in the August policy review, foreign brokerages said today.