This is the 20th increase since 4 May, when state-owned oil firms ended an 18-day hiatus in rate revision they observed during assembly elections in states like West Bengal.
Petrol prices, which have already crossed the Rs 100-mark in several cities in Rajasthan, Madhya Pradesh and Maharashtra, breached the barrier in Mumbai on Saturday.
While revenue gains from taxes on retail fuel are key for India to boost spending, RBI sees those levies, along with elevated crude prices, already pushing core inflation higher.
The duty on petrol, diesel is the govt’s way out of a tight fiscal situation, but it can lead to problems like inflation & excessive dependence on petroleum products.
Fuel prices had risen for 12 straight days before hitting a two-day pause button on 21 and 22 February. The increase follows a spurt in oil prices in the international market.
In an editorial of its mouthpiece Saamana, Shiv Sena urged the Centre to control the prices of essential items, and questioned Bollywood actors for their silence on the issue.
Demand for diesel, which accounts for around 40% of Indian fuel use in a normal year, rebounded quickly after lockdown was imposed, but recovery has since slowed.
Petrol price on Saturday was hiked by 24 paise per litre and diesel by 27 paise as hopes of a Covid vaccine development led to a rally in international oil prices.
Total petroleum demand rose 2.7% year-on-year in October, reaching 17.8 million tons. Road fuels reached pre-pandemic levels, but it was demand for naphtha that really soared.
Indian govt officials last month skipped Turkish National Day celebrations in Delhi, in a message to Ankara following its support for Islamabad, particularly during Operation Sindoor.
Bihar is blessed with a land more fertile for revolutions than any in India. Why has it fallen so far behind then? Constant obsession with politics is at the root of its destruction.
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