No full petrol price increase for South Africa this month - Government intervention

No full petrol price increase for South Africa this month - Government intervention

The fuel prices have been on fire since the beginning of August due to rising crude oil prices and low value of rupee against the USA dollar. The price of petrol in Delhi today is Rs 79.15, in Kolkata Rs 82.06, and in Chennai Rs 82.24. With expectations of further tightening in oil prices due to a mix of factors such as declining inventories in the U.S., and Iran sanctions coming into place, the trend of rising petroleum prices is likely to continue.

Meanwhile, Union Minister for Petroleum and Natural Gas Dharmendra Pradhan last week blamed the "isolated" policies of the United States for the "abnormally" rising fuel prices in the global markets. OPEC had said to increase the production of oil by one million barrel per day but it has been two months (July and August) but they have not done this so far.

To be sure, the current phase of increase in petrol-diesel prices is not unprecedented. Due to sanctions on Tehran from the US, India had to reduce its imports from Iran, subsequently reducing the total fuel availability in the country.

Petrol and diesel prices in the country have touched their highest levels on Monday. Since then, the fuel prices have been revised with effect from 6 am on a daily basis. There is a pressure on oil prices due to a decrease in production.

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Diesel is expected to rise by 1. "Secondly, global currencies have weakened against the USA dollar". If the current trend continues, both petrol and diesel prices will have a double digit price growth in the current fiscal year.

The uptrend in petrol price hikes continued on Tuesday, with the fuel touching a fresh high across the country.

Petroleum prices, which are determined by the cost of crude oil in global markets, may continue to go up as the worldwide markets are under pressure due the U.S. sanctions on Iran and Saudi Arabia's decision to cut oil production.

Unleaded petrol will also go up, and will climb to its highest value in three months.

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