Centre working on long-term solution on fuel price hike: Pradhan

Dharmendra-Pradhan in Bhubaneswar

Dharmendra-Pradhan in Bhubaneswar

The price rose to Rs 77.97 in Delhi from Rs 77.83 a litre on Friday, data from the Indian Oil Corp website showed.

The simultaneous skyrocketing of the two most-used fuels in the city means that family budgets may get squeezed on multiple fronts: for families that own small cars have already reached levels last seen in 2014; and there has been increasing clamour from operators, demanding a hike in bus and cab fares.

Meanwhile, the cost of diesel per litre has also been increased and the revised prices in Delhi are - Rs 69.17 and Mumbai Rs 73.64 per litre.

Despite the decline in global crude oil prices, fuel prices continue to soar in India. Brent crude oil prices had earlier this month hit $80 per barrel - in a first since late 2014 - on looming USA sanctions on Iran. Oil producers, who get paid worldwide rates for the oil they produce from domestic fields, would have to part with any revenue they earn from prices crossing $70/bbl mark. Eight weeks later, on 23 May, their pump prices averaged 124.74ppl for petrol and 127.69ppl for diesel. With the West Asian situation getting uncertain, thanks also to the idiosyncrasies of US President Donald Trump, disruption in supplies and consequent pressures on crude prices can not be ruled out. High oil price is going to inflict additional pain just as businesses and consumers were returning to normalcy after demonetisation and GST.

Speaking to mediapersons at a press conference, Pradhan said that the central government and the state have roles in controlling the fuel price.

The price of petrol was increased by 15 paise per litre on Monday, taking it beyond Rs 86 in Mumbai. In 2016-17, the government's revenue from the petroleum sector was Rs 5.24 lakh crore, accounting for 3.5 per cent of GDP. After the NDA government has come to power tax on petroleum products has become regular source of government income.

Although the persistent rise in domestic fuel prices is attributed to high crude oil prices, in the last four days prices of crude have receded, raising hopes of eventual ease in domestic fuel prices. While the crude oil prices were low, the government repeatedly levied cess on fuel to fund its infrastructure and other development programs while keeping the annual budget deficit in check.

Reacting to the statement of the Petroleum Minister, Odisha Finance Minister Sashi Bhushan Behera said he was trying to hide his inefficiency to control the hike in fuel prices.

Recommended News

  • Tropical Storm Watch & Storm Surge Watch issued for MS Gulf Coast

    Tropical Storm Watch & Storm Surge Watch issued for MS Gulf Coast

    Areas along the coast can expect 3-6 inches of rain, with even more expected in the coastal Carolinas and southern Florida . A visible satellite image of the cluster of thunderstorms forecasters are watching for signs of tropical storm development.
    Confident of winning Karnataka Assembly floor test, says Yeddyurappa

    Confident of winning Karnataka Assembly floor test, says Yeddyurappa

    Both the Congress and JD (S ) have alleged that the BJP is trying "horse trading" to engineer defection in their parties. Karnataka Governor Vajubhai Vala calls special assembly at 11 am for oath-taking before the floor test at 4pm.
    Confidence in Walmart (NYSE:WMT) Shares by Gordon Haskett Fall

    Confidence in Walmart (NYSE:WMT) Shares by Gordon Haskett Fall

    Sell side analysts plays vital role in buying and selling a stock where 2 analysts rated Wal-Mart Stores Inc. The rating was maintained by Credit Suisse on Tuesday, May 1 with "Hold". (NYSE: WMT ) for 24,361 shares.
  • Everything you need to know about Battlefield V

    Everything you need to know about Battlefield V

    This is an interesting spot for the game to launch, as that means it'll be coming out right next to Call of Duty: Black Ops 4 . As for the trailer, it's incredibly unlikely that your actual gameplay experience will even remotely resemble what was shown.
    Rohr releases 30-man provisional list for the World Cup

    Rohr releases 30-man provisional list for the World Cup

    "The list is fantastic; I believe Rohr has done his homework very well before coming out with the list". He said: "Junior has proven himself with the Olympic team and he is doing well in his club in Egypt".
    Animosity Is Good. The Caps Will Bounce Back From This

    Animosity Is Good. The Caps Will Bounce Back From This

    WASHINGTON , D.C. — Entering Game 3 of the Eastern Conference final against the Capitals , the Lightning faced uncertainty in net. A lot of people have friends and family coming down and ticket requests.
  • Prince Harry reportedly had emotional talk with ex Chelsy Davy before wedding

    Prince Harry reportedly had emotional talk with ex Chelsy Davy before wedding

    Their friendship has remained intact over the years, so she was one of the lucky ones to score an invite to the royal wedding . As for the sermon delivered by Bishop Michael Curry, Beckham said, "I thought what he said was very strong and optimistic".
    Indian nurse who died battling Nipah virus hailed as hero

    Indian nurse who died battling Nipah virus hailed as hero

    However, if travellers wish to be extra cautious, they may avoid the four districts", health secretary Rajeev Sadanandan said. There is no vaccination for the virus which induces flu-like symptoms that lead to an agonising encephalitis and coma.
    World Health Organization  convenes emergency meeting as Ebola spreads in DRC

    World Health Organization convenes emergency meeting as Ebola spreads in DRC

    Motshegwa said following the outbreak of the deadly Ebola in the DRC, her ministry has put measures in place at points of entry. She warned that the disease can be transmitted via human contact with the body fluids of an infected person and is fatal.
  • Cyclone kills eleven in Oman and Yemen

    Cyclone kills eleven in Oman and Yemen

    A holiday destination, Salalah's empty beaches were strewn with debris and trash while churning waves inundated unprotected areas. Cyclone Mekunu hit southern Yemen and the coast of neighbouring Oman over the weekend, resulting in several fatalities.
    Ireland fall short of improbable victory on Test debut

    Ireland fall short of improbable victory on Test debut

    Murtagh was the key man for Ireland bowling exceptionally, and it was apparent that he was key to any chance of an Irish victory. Kevin O'Brien, who on Monday became the first Ireland batsman to score a Test hundred, fell to his first ball on Tuesday.
    Services mark Peace Officers Memorial Day in Georgia

    Services mark Peace Officers Memorial Day in Georgia

    We most certainly must teach children that despite what they might see on television, the police are not the enemy. These loyal companions have given their lives to ensure their handlers, fellow officers, and citizens stay safe.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.