The prices of CNG and piped natural gas (PNG) were also hiked in metro cities since the price of gas procured by city distributors is mostly dollar-denominated. This meant India had to import 82 percent of its fuel requirements at around $77.06, a very high rate, today, thereby taking fuel prices to an all-time high of Rs 86.56 per litre for petrol and Rs 75.54 per litre for diesel in Mumbai.
Officials said the spike in rates is on account of exchange rate falling to a record Rs 71 to a dollar, depreciating by Rs 2.5 in a month.
Dharmendra Pradhan, Union Petroleum and Natural Gas Minister, said that "external factors" are responsible for the price rise. Mumbaikars are already frustrated with low mileage and extra fuel consumption due to road congestion, and vehicle speeds dropping to 10kmph on express highways during peak hours. "Apart from that, crises in countries like Venezuela and Iran are increasing".
Petrol price in Delhi rose to a record ₹79.15 a litre and diesel climbed to a fresh high of ₹71.15, according to price notification of State-owned fuel retailers.
Petrol is being sold at Rs 53.88 per litre ($0.64 a litre) in the U.S. while diesel at Rs 58.9 ($0.83 a litre). Transporters have also threatened to agitate if there is no control or reduction in rates.
This year, there's South Africa has been hit by record fuel prices. Not only that, but the abject condition of roads across the country during the ongoing monsoon season is also a contributory factor to motorists having to tank up more often.
Last month, Radebe appeared in Parliament and told MPs that the government's hand were tied.
Last time petrol prices touched an all-time high on May 29, 2018 at Rs 78.43 per litre and Rs 81.06 per litre, Rs 86.24 and Rs 81.43 in Delhi, Kolkata, Mumbai and Chennai, respectively.