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Petrol, diesel price rise saga explained -Abhik Deb

-The Economic Times

Change in fuel price indeed has far reaching effects as its impact ranges from daily budget to macroeconomics like inflation numbers.

The rise in petrol and diesel prices has been making news for the last week or so. Change in fuel price indeed has far reaching effects as its impact ranges from daily budget to macroeconomics like inflation numbers. Here is a roundup of what is happening and why it matters.

How much have the prices risen?

On September 12, petrol cost Rs 79.48 per litre in Mumbai and Rs 70.38 per litre in Delhi while diesel was priced at Rs 62.37 per litre in Mumbai and Rs 58.72 per litre in Delhi.

The price of petrol in Mumbai is highest since August 2014 while diesel prices reached their peak since August 2014 in Kolkata and Chennai.

Since July 1, petrol has climbed Rs 5.18 per litre in Mumbai, and diesel by Rs 5.75 per litre in Kolkata, and Rs 5.71 per litre in Chennai.

A fact check confirmed that the prices have consistently gone north across all major cities in the last few months.

The crude connection?

It is common knowledge that the price of fuel in India depends upon the global crude oil prices and fluctuations in the same is expected to reflect in the amount of money you pay at the petrol pump.

The uproar regarding the prices gained a few decibels when it was discovered that crude oil prices have declined in the last three years. On May 26, 2014, when the current government took over, a barrel of crude oil cost Rs 6,330.65 which by September 11,2017 had almost halved to Rs 3,368.39.

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