Why petrol, diesel rates are rising in India? Petroleum minister explains
New Delhi, Feb 21: Amid criticism, India has urged the OPEC (Organisation of the Petroleum Exporting Countries) and OPEC plus countries to not go for a production cut as that is impacting the fuel price in the country.
"There are two main reasons behind the fuel price rise. International market has reduced fuel production and manufacturing countries are producing less fuel to gain more profit. This is making the consumer countries suffer," Union petroleum minister Dharmendra Pradhan said on Sunday.
Petrol price on Saturday touched an all-time high of Rs 97 per litre in Mumbai while diesel rate crossed Rs 88-mark. This was the 12th straight day of price hike and the largest daily increase since oil companies started to revise rates on a daily basis in 2017.
The increase pushed the petrol price to Rs 90.58 a litre in Delhi and to Rs 97 in Mumbai.
International oil prices have been on the boil since Saudi Arabia pledged additional voluntary output cuts of 1 million barrels per day in February and March under a deal between the Organization of the Petroleum Exporting Countries (OPEC) and its allies including Russia, a group known as OPEC.
This has resulted in oil prices rising to USD 63 per barrel, the highest level in more than a year, leading to retail pump rates in India breaching the Rs 100 a litre mark.
Opposition parties including Congress have criticised the price hikes, blaming it on the Modi government raising taxes to scoop out the benefit that arose from international oil rates plunging to a two-decade low in April/May last year. While global rates have rebounded with pick up in demand, the government has not restored the taxes, which are at a record high.