The Union Government on Wednesday said that sharp hike in fuel prices was due to the rise in crude oil prices in the international market. Reports quoted Petroleum Minister Dharmendra Pradhan as saying that crude prices rose by 15 percent due to a dip in production.
"Oil sector is related to the international market. There was a 13% dip in refinery production due to Texas hurricane. It'll ease," Pradhan told media.
Pradhan said that the government wanted the fuel prices to come under the ambit of GST which is likely to lessen the price burden on consumers. He said it will also lessen the unpredictability of fuel prices.
The government has excluded petrol and diesel from the ambit of GST, however, petroleum products still attract state and central levies such as excise duty and VAT.
The price of petrol in Delhi has increased by Rs 7.29 since July 1.
The fuel prices are at their peak in the last three years. The petrol price is almost touching Rs 80 a litre in Mumbai.
Petrol price in Delhi on Tuesday was at Rs 70.38 per litre, whereas in Mumbai a litre of petrol costs Rs 79.48. In Chennai, the price of petrol is Rs 72.95 while in Kolkata it is Rs 73.12.
In the month of September itself, the petrol price on an average has gone up by almost 1.53-1.80 per cent while that of diesel by 2.78-2.96 per cent.
From June 16 onwards, the major oil companies decided to revise petrol and diesel prices on a daily basis. Before that, the prices used to be revised on a fortnightly basis.