The prices of petrol and diesel hit a new high on Thursday, with residents in Mumbai having to shell out Rs. 86.91 for a liter of petrol and Rs. 75.96 for a liter of diesel.
In Delhi, the petrol price was Rs.79.51 per litre, while diesel price increased to Rs. 71.55 per litre, which is also at a record high, The Hindureported.
Despite the rising prices, the Centre has decided not to cut excise duty on petrol and diesel, saying international oil prices are volatile and have not shown any linear movement, Press Trust of India reported.
Earlier this week, Finance Minister Arun Jaitley said, "There is no straight line movement of global crude oil prices. They go up, they come down. In April and May, there was a lot of pressure. In June, they came down. In July, they came down and in August, there is again (an upward) movement. In last two days, there has been some moderation. For six days before that, there was a gain."
Union Petroleum and Natural Gas Minister Dharmendra Pradhan has blamed the price rise on "external factors."
"I would like to mention two points, and both these subjects are external. OPEC (Organization of the Petroleum Exporting Countries) had promised that it will raise production by one million barrels per day, which was not raised. "Apart from that, crises in countries like Venezuela and Iran are increasing. There is a pressure on oil prices due to a decrease in production. Secondly, global currencies have weakened against the US dollar," he said.