National and Financial capitals of India- Delhi & Mumbai witnessed a drastic hike in the petrol pricing on Saturday and the new price is at a pinching rate of Rs 70.03 per litre and Rs 79.14 per litre respectively, highest since August 2014. As per news report, this rise has taken petrol rates to the highest in last eight months. Since July, the price of petrol and diesel has seen a rise of Rs 7.11 and Rs 5.09 per litre in Delhi.
As per the report by PTI, the state-owned oil companies in June dumped the 15-year old practice of revising rates every 15 days, that is on 1st and 16th of every month and instead adopted a dynamic daily price revision to instantly reflect changes in cost. Rates during the first fortnight dropped but have been on the rise since July 3. Oil Minister Dharmendra Pradhan last week announced that the prices of petrol and diesel will be revised on the daily basis so that any drop in international oil rates will be passed on to consumers immediately rather than having to wait for 15 days. Despite this, the increase in price of the fuel struck the pocket of common man hard.
Pradhan had said that the practice was in the interest of consumers and that he did not think there was a need to change it. The minister, however, blamed the rise in global oil prices as the result of an increase in the fuel prices. “Daily revision in prices is good. When we started daily revisions on June 16, rates dropped in the first fortnight. Thereafter it has increased mainly because of rise in global oil prices,” he said.