Fuel prices hit all-time high, petrol Rs 86.56 per litre in Mumbai

On 4 September a consumer paid ₹ 79.31 to buy a litre of petrol and ₹ 71.34 for a litre of diesel at an Indian Oil petrol pump in New Delhi

Fuel prices hit all-time high, petrol Rs 86.56 per litre in Mumbai

Diesel was at Rs 75.54/litre, up by Rs 0.44/litre. Petrol price in Delhi rose to a record Rs 79.31 per litre and diesel climbed to a fresh high of Rs 71.34, according to price notification of state-owned fuel retailers.

In the national capital, prices of petrol and diesel surged 16 paise/litre and 19 paise/litre, respectively.

Globally, oil prices rose on Monday, supported by concerns that falling Iranian output will tighten markets once U.S. sanctions bite from November, but gains were limited by higher supply from OPEC and the United States.

Radebe said yesterday that the department had made a decision to intervene temporarily this month, but stressed that this was a "once off temporary intervention to provide some relief to motorists and consumers against fuel price hikes".

"Apart from that, crises in countries like Venezuela and Iran are increasing". There is a pressure on oil prices due to a decrease in production.

As petrol and diesel prices hit new highs on Monday, former Union Finance Minister P. Chidambaram said the Centre and states must act together to bring petrol and diesel under GST immediately. "You can then buy petrol paying a dollar", he said. Iran is the third biggest producer in the Organisation of the Petroleum Exporting Countries (OPEC).

Trend of diesel prices since the beginning August. In July, it cut its oil production by an average of 200,000 barrels per day - a move that has created oil shortage in global market.

Earlier, France-based BNP Paribas had said that because of the U.S. sanctions on Iran, oil production from the OPEC would come down from an average of 32.1 million barrels per day in 2018 to 31.7 million in 2019.

India imports about 80% of its crude oil, and the falling Indian rupee will make the imports costlier and lead to a rise in fuel prices.

Any rally in global crude oil price will impact India's oil import bill and trade deficit as every dollar increase in oil prices would impact import bill by around ₹10,700 crore on an annual basis.

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