Petrol price in Mumbai surged to Rs 80.10 per litre on Monday followed by Kolkata which saw second highest rate of petrol among metro cities.
Reducing fuel prices was one of the key promises of Prime Minister Narendra Modi. According to the Indian Oil website, the price of petrol in Mumbai on Sunday was Rs 79.95 and that in Delhi was Rs 72.08 per litre.
The government ended all price controls on petrol and diesel in July 2017 and allowed oil marketing companies to fix fuel prices based on market prices of crude oil.More news: Tsunami warning after magnitude 8.2 quake hits off coast of Alaska
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Experts believe that once brought under the GST, prices of petrol and diesel are likely to stabilise and may remain within the Rs 50-mark. This despite the fact the crude prices in global market was over $100 per barrel. In Kolkata, petrol cost Rs 74.79 on Sunday and in Chennai the price was 74.75 on the same day. Prices today stood at Dollars 68.89 a barrel, up 0.4 per cent from their last close, albeit much lower than the January 15 peak of USD 70.37. Union Minister for Petroleum and Natural Gas Dharmendra Pradhan yesterday said that the government is "trying that petrol, diesel and kerosene should also come under the ambit of GST". Petrol and diesel prices constitute 20% of the total composition of the inflation index. "Besides, the state governments too levy cess on petrol", he said.
Petrol price surged to Rs 71.56 per litre in Delhi on 18 January which was highest level since August 2014.
Addressing a press conference here, Petrol Pump Dealers' Association of Punjab President Paramjit Singh Doaba said, "If the Punjab government does not heed to their demands, they will intensify their protest by shutting down petrol pumps across the state".