In the national capital, petrol prices touched Rs 79.15/litre and diesel was at Rs 71.15/litre. "This is a once off temporary intervention to provide some relief to motorists and consumers against fuel price hikes", the department said in a statement.
Fuel prices have been on the rise since August 16 after the rupee dipped to its lowest value against the United States dollar. OPEC had said to increase the production of oil by one million barrel per day but it has been two months (July and August) but they have not done this so far.
Petrol and diesel are on a record high, less than four months after a hike that caused an uproar across the country. "Apart from that, crises in countries like Venezuela and Iran are increasing". This came at a time when India's crude oil imports from Iran had increased by 52 percent in June 2018. There is a pressure on oil prices due to decrease in production. An HT analysis of petrol and diesel prices in Delhi from 2002 onwards shows that there are instances of a much bigger rise in petrol-diesel prices in the past. "Secondly, global currencies have weakened against the U.S. dollar", he had said.
The already high fuel prices continue to surge for 10th straight day. Saudi Arabia, which is world's second largest oil producer, too is contributing to keep the prices on an upward trend.
Petroleum prices, which are determined by the cost of crude oil in global markets, may continue to go up as the worldwide markets are under pressure due the United States sanctions on Iran and Saudi Arabia's decision to cut oil production. While Mumbai has the highest VAT (Value Added Tax) of 39.12 per cent on petrol. Delhi charges a VAT of 27 per cent on petrol and 17.24 per cent on diesel.