Published: Mon, May 28, 2018
Finance | By Cynthia Curry

Centre looking for immediate solution to soaring fuel prices : Oil Minister

Centre looking for immediate solution to soaring fuel prices : Oil Minister

Today the petrol price of New Delhi has touched a new high of Rs 78.12 per litre higher by 15 basis points compared to previous day price of Rs 78.27 per litre. Diesel prices, which have already hit unprecedented levels, set new records across the country. While petrol prices were hiked by 15 paise per litre in Delhi, Kolkata, Mumbai and Chennai, diesel prices were raised by 11-12 paise per litre.

Further, in Kolkata, petrol price, now inching towards a four year high, was sold at Rs 80.61, against 80.47 per litre on Friday.

However, global crude oil prices have fallen significantly since their peak in May - the Brent crude variety has lost 6.4% and West Texas Intermediate variety declined 9.1%, Reuters reported.

Brent crude oil price has slipped almost $5 a barrel in last two days after rising to almost $80 per barrel mark, its highest level since 2014 last week.

US West Texas Intermediate (WTI), another worldwide crude oil benchmark was at $66.21 at 10.45 am down by $1.29 from Friday's close of Rs 67.50 per barrel.

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These prices are effective from 6 am on Monday. "This causes pain at the pumps due to the fact that, similar to oil, fuel is traded in dollars so the lower the exchange rate, the worse the price gets for United Kingdom motorists". Think tanks have recommended bringing petroleum products under the purview of the GST to bring down prices. 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.

The government is likely to call a meeting to find a solution to the price hike.

Pradhan further said that the Centre under Prime Minister Narendra Modi will soon take quick measures to give some relief to the common people from the sky-rocketing fuel prices.

Bharatiya Janata Party (BJP) president and Rajya Sabha MP, Amit Shah, on last Tuesday, assured that the government will come up with a solution within two to three days.

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