Petrol prices were increased to Rs 86.72, Rs 82.22 and Rs 82.41 per litre in Mumbai, Kolkata and Chennai respectively on Tuesday.
Led by a spike in global crude oil prices and a fall in rupee, the prices of both petrol and diesel are now at an all-time high.
The rupee collapsed to a new lifetime low of 71.21 against the U.S. dollar, while petrol prices rose to a new high of Rs 86.56 a litre in Mumbai on Monday. "OPEC (Organisation of the Petroleum Exporting Countries) had promised that it will raise production by one million barrels per day, which was not raised", he told reporters in Surat on Sunday. Also, crude oil prices have gained $7 a barrel in a fortnight. There is a pressure on oil prices due to decrease in production. "This is a once off temporary intervention to provide some relief to motorists and consumers against fuel price hikes", the department said in a statement. "Secondly, global currencies have weakened against the U.S. dollar", he had said. "The situation in Iran has also made situation tensed and they are also a factor for the hike in fuel prices", he said. Apart from crude oil prices in the worldwide market and the weakening rupee, one of the factors affecting fuel prices is the high value added tax (VAT) in the state of Maharashtra.
Azar Jammine, the chief economist at Econometrix, said he was fascinated to note that the petrol price was not going to increase this month, apart from the slight increase for the salaries of forecourt staff.