As government ponders on fuel prices, petrol hits Rs 85 in Mumbai

Even as the central government discusses measures to curb the persistent rise in domestic transport fuel prices, the petrol cost in Mumbai breached the Rs 85 a litre mark on Thursday.

The price of the fuel is already at an all-time high in Mumbai at Rs 85.29 per litre along with Delhi and Chennai.

In Delhi and Chennai, petrol was sold for Rs 77.47 and Rs 80.42 per litre respectively, according to data on the website of Indian Oil Corp.

On Wednesday, following a Cabinet meeting, Union Minister Ravi Shankar Prasad said that high transport fuel cost is a matter of both concern and discussion and that government is trying to find a long-term solution to the problem which has arisen out of global crude oil price volatility.

"The issue of the frequent hike in fuel prices has become a matter of discussion and concern and the government is involved in the whole process of concern and uncertainty," Prasad said.

"In view of the global uncertainty on oil prices, the government is looking at the desirability of taking a long-term view to deal with the issue of volatility and the frequent ambiguity arising out of the fluctuation in prices."

On Thursday, Kolkata joined the club of cities with petrol prices over Rs 80 per litre, at Rs 80.12, the highest in nearly four years.

The persistent rise in transport fuel prices in the country is largely attributed to the surge in crude oil prices and high excise duty. The price of Brent crude oil is currently over $79 per barrel.

In addition, diesel prices, which have already reached unprecedented levels, set new records across the country. In Delhi, Kolkata, Mumbai and Chennai, it was sold at Rs 68.53, Rs 71.08, Rs 72.96 and Rs 72.35 per litre respectively.

--IANS

rrb-rv/vm