Petrol and diesel prices saw a hike once again today, making it the fourth consecutive day that recorded a price upsurge. In the national capital, diesel prices increased by 30 paise per litre to ₹90.77 and petrol prices increased by 25 paise per litre to ₹102.39. The global crude oil prices remained the same, at $79 per barrel. Petrol prices jumped to ₹108.43 per litre and the diesel prices to ₹98.48 per litre in the financial capital(Mumbai). Retail prices are different in different parts of the country, depending upon the local tax rates levied by the administration.
The former minister of Petroleum and Natural gas, Mr. Dharmendra Pradhan, had previously blamed the global crude prices and Congress’s alleged oil bonds for the upward trajectory of petrol price in India.
How are fuel prices decided in India:
Petrol and diesel prices have touched record high across the country and so has the global crude oil prices. Major OMC’s revise fuel rates on daily basis considering the global crude rates and rupee-dollar exchange rate. Changes, if any, are implemented with effect from 6am every morning.
What are oil bonds? why the Centre holds oil bonds responsible for the current petrol-diesel price hike?
The Finance Minister Nirmala Sitharaman blamed oil bonds issued by the UPA government for the hike in prices of fuel. The FM claimed claimed that UPA issued ₹1.4 lakh crore worth oil bonds in their regime to slash fuel prices. Now these bonds are hitting payback times due to which the government has to levy hefty tax rates on petrol and diesel.
According to the BJP government, UPA during their regime, issued oil bonds to OMC’s to compensate for the losses they incurred. The OMC’s, during that era, shielded the consumers from rising crude oil prices by charging less. They in turn bared losses which the UPA government tried to offset using oil bonds.
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