Government absorbs September fuel price hike

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The fuel prices on Tuesday surged for the 10th straight day with diesel prices going up by almost 20 paise and petrol prices by 16 paise. "The dual impact of rising oil prices and depreciating Rupee does not auger well for PSU (public sector unit) oil and gas companies as it will increase their regulatory risks", it said.

The recent slump in rupee also has lifted the import cost of crude oil, subsequently raising fuel prices.

Diesel rates on Monday were hiked by 39 paise a litre, the steepest increase since the daily revision in prices was introduced in mid-june 2017.

But the Opposition launched a fresh offensive on the government over the hike in fuel prices. The price of petrol in Delhi was Rs. 79.15 per litre on September 3.

Internal factors: These include rising prices in crude oil, transport costs, and taxes and levies.

In a media statement, the department said that South Africa had witnessed "sustained increases in fuel prices for the past few months, which placed a strain on the consumers". Petrol fares went up by 16 paise per litre and diesel 19 paise per litre, according to price notification of state-owned fuel retailers.

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The rupee-dollar exchange rate has dropped to an all-time low of Rs 71.42 to a dollar on August 31. OPEC (Organisation of the Petroleum Exporting Countries) had promised that it will raise production by one million barrels per day, which was not raised.

The rupee, which lost 10 paise against the USA dollar in late afternoon trade on Monday, ended at a new record low of 71.10.

Energy minister Jeff Radebe said on Monday that fuel prices will not increase next month‚ but it will nevertheless rise by 4.9c/l. There is a pressure on oil prices due to a decrease in production. "Secondly, global currencies have weakened against the U.S. dollar", Pradhan had said in Surat.

Delhi chief minister Arvind Kejriwal on Monday said the government had made a "mess" of the economy.

The price of fuel has been registering a rise in the last 10 days.

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