New Delhi: Fuel prices continued to rise on Tuesday. Petrol and diesel were at Rs 70.41 per litre and Rs 64.47 per litre respectively; that’s an increase of 28 paise and 29 paise respectively. In Mumbai, petrol was at Rs 76.05 per litre at an increase of 28 paise while the diesel was at Rs 67.49 per litre which was a hike of 31 paise.
The domestic fuel prices depend upon international fuel prices on a 15-day average and the value of the rupee.
Earlier, reports had suggested that the fresh increase comes after crude oil rates edged higher last Thursday. Petroleum and Natural Gas Minister Dharmendra Pradhan had earlier said that the hike in the prices of petrol and diesel in the country was because of the depreciation in the value of the Indian Rupee against the US dollar.
Last year on October 4, the petrol price had touched a record high of Rs 84 per litre in Delhi and Rs 91.34 in Mumbai. Diesel on that day had peaked at Rs 75.45 a litre in Delhi and Rs 80.10 in Mumbai.
The Government had also decided to cut excise duty on petrol and diesel by Rs 1.50 per litre each and asked state-owned fuel retailers to subsidise the price by another Re 1 a litre by reducing their margins.
Making the announcement, Finance Minister Arun Jaitley asked the states to match the move with a similar cut on VAT in order to double the reduction in retail rates, a move that was followed by as many as 14 states, 13 of which are BJP-ruled along with Jammu and Kashmir, which is under Governor’s rule.
States which announced a cut in VAT of up to Rs 2.50 per litre to bring a Rs 5-per-litre reduction in pump rates were Uttar Pradesh, Madhya Pradesh, Maharashtra, Rajasthan, Chhattisgarh, Jharkhand, Tripura, Assam, Arunachal Pradesh, Himachal Pradesh, Haryana, Uttarakhand, Goa and Jammu and Kashmir.
Fuel prices continued to dip until the end of last year but have been steadily rising this year.