Fuel prices unchanged on Wednesday, down Re 1 in Kolkata

Transport fuel prices were kept unchanged on Wednesday after breaching record levels continuously for over a week, except in Kolkata where rates actually fell following the state government's decision of an excise cut.

Domestic fuel prices had continued their northward push till Tuesday with a depreciating rupee and expensive crude oil further pushing petrol and diesel to record highs under the daily dynamic pricing regime.

Petrol in Delhi on Wednesday stayed at Rs 80.87 per litre, and in Chennai and Mumbai at Rs 84.05 and Rs 88.26, respectively, according to the Indian Oil Corporation.

With West Bengal on Tuesday announcing a Re 1 per litre reduction in the state tax, while petrol in Kolkata sold at Rs 82.74 on Wednesday, diesel was priced at Rs 74.82.

On Wednesday, diesel prices in Delhi stayed at Rs 72.97 per litre, and at Rs 77.13 and Rs 77.47 per litre in Chennai and Mumbai, respectively.

Fuel prices in the country have been going up almost daily since August 1. They fell only once on August 13 in the last 41 days. Prices have surged on 30 days and remained unchanged on 11 days, and have been breaching record levels for more than a week now.

Sector experts say a weak rupee and high excise duty are major factors for the rise in fuel prices.

Inflationary risks along with broadly negative global cues depressed the Indian rupee to a new low of 72.74 on Tuesday.

High global crude oil cost has become a major concern for the country which is a net importer of oil. The UK Brent crude oil price hovers around $77 per barrel.

Since the start of this calendar year, the petrol price in Delhi has gone up by 15.4 per cent from Rs 69.97 on January 1, 2018. The hike in diesel price has been even more steep. It has gone up by 22 per cent since January 1, 2018 when it was Rs 59.70.

As per the country's pricing mechanism, the domestic fuel prices are dependent upon the international fuel prices on a 15-day average and the value of rupee.

--IANS

bc/nir