Fuel Prices Soar To Highest In Years: Petrol Price Crosses Rs 70/Lt In Delhi, Approaches Rs 80/Lt In Mumbai
The price of petrol and diesel has increased in major cities across India since the government initiated the dynamic pricing system where fuel prices are upgraded every day rather than every fortnight.
The increase in price has been particularly marked in Delhi, Chennai, Mumbai and Kolkata.
Following the inception of the dynamic pricing system on June 16, the price of petrol went down for two weeks. But the prices have increased continuously since then.
On June 16, petrol cost Rs 65.48 per litre in Delhi. By July 1, it went down to Rs 63.09. But since then the price has gradually increased; today, it costs Rs 70.30 per litre.
Similarly, in Mumbai, on June 16, petrol cost Rs 76.75 per litre in Delhi. By July 1, it went down to Rs 74.3. As of September 11, it costs Rs 79.41 – the highest since August 2014.
Kolkata and Chennai, too, are paying Rs 7 more on petrol than they were paying in July.
On the other hand, the price of diesel has also risen by Rs 5 per litre since July 1.
Dynamic pricing system began last month
Usually, the fuel prices were changed every fortnight. On June 16, the government green-lighted the era of dynamic pricing, where fuel prices are changed every day, at 6 AM.
Because the daily variations are in minuscule amounts – mostly in paise – they don’t have the shock value that was the characteristic of the the fortnightly changes.
Earlier this month, Dharmendra Pradhan, the Minister for Petroleum and Natural Gas, justified the dynamic pricing system despite the rising costs.
Speaking to reporters, he had said, “It is in the interest of consumers. I don’t think that there is a need for change in it … Daily revision in prices is good. When we started daily revisions on June 16, rates dropped in the first fortnight. Thereafter it has increased mainly because of rise in global oil prices.”