PM Modi to Meet Oil Company Heads Today to Discuss Rising Fuel Prices

New Delhi: Despite the Centre deciding to slash prices of petrol and diesel by Rs 2.50 a litre, retail rates of fuel in the country have been on the rise, prompting Prime Minister Narendra Modi to meet oil company chiefs on Monday.

Fuel prices continued to rise across the four major metros on Sunday, with petrol touching Rs 82.72 per litre in the national capital — up from Rs 82.66 on Saturday. Similarly, petrol prices in Mumbai, Kolkata and Chennai also rose to Rs 88.18, Rs 84.54 and Rs 85.99 per litre in Chennai.

Diesel too showed an upward swing, with Mumbai, Delhi, Kolkata and Chennai retailing the fuel at Rs 79.02, Rs 75.38, Rs 77.23 and Rs 79.71 per litre respectively.

The prices differ according to the region due to local taxes as fuel is not yet under the regime of the Goods and Services Tax (GST). Delhi has the lowest tax rate among the four metro cities.

The increase in transport fuel prices comes amid a continuous surge in global crude oil prices. UK Brent crude has gone upwards of $85 per barrel.

Earlier this month, Union finance minister Arun Jaitley announced a cut in excise duty by Rs 1.50 a litre. Additionally, the state-owned oil marketing companies were mandated to reduce prices of petrol and diesel by Re 1 a litre each. The decision to cut excise duty by Rs 1.50 per litre, Jaitley said, would cost the Centre Rs 10,500 crore this financial year.

However, the move has not helped consumers who continue to struggle with high fuel prices.

The Opposition too had hit out at the Centre, calling the cut “a needle in a haystack”. “After inflicting a thousand wounds, Modi govt applies a bandage — a nominal cut in fuel prices”, the Congress said. It had also demanded that petrol and diesel be brought under the ambit of GST.

Meanwhile, official sources said Modi will meet the chief executives of major global and Indian oil and gas companies as the US sanctions on Iran come into effect from November 4 and crude oil prices continue to be volatile. He is also expected discuss ways to revive investment in India's upstream sector.