No respite for motorists, as petrol and diesel prices continue to rise

Fuel prices continued to rise on Sunday, with petrol and diesel prices in the national capital going at Rs 82.72 per litre and Rs 75.38 per litre respectively.

Meanwhile, Mumbai too witnessed a rise of 0.6 paise in petrol and 0.20 paise in diesel. Prices of petrol and diesel are now Rs 88.18 and Rs 79.02 in the island city.

Despite the Centre announcing a Rs. 2.50 per litre reduction in the prices of fuel, common man are yet to experience any relief, as skyrocketing prices of petrol and diesel are continuing to burn holes in their pockets.

With no significant let-up in retail fuel prices despite the Centre's intervention, Prime Minister Narendra Modi has called for alternative measures to curb rates in future, sources told DNA. Soaring oil prices have become a huge challenge for the Centre as oil marketing companies can't afford to repeatedly subsidise petrol and diesel.

A week after slashing excise duty on fuel, PM Modi on Friday met Finance Minister Arun Jaitley, Commerce Minister Suresh Prabhu and Oil Minister Dharmendra Pradhan and discussed ways to shift the country's energy dependence towards biofuels.

The PM reviewed the status of production of oil and gas in the country. The government wants domestic production of oil and gas to be increased as it feels curtailing oil consumption is not a resolution.

The high-level meeting also talked about cutting oil import by 10 per cent by 2022, said sources, requesting anonymity. "India's vulnerability is in oil imports as it meets over 82 per cent of its crude oil requirement through imports.

The high international prices are inflating the import bill. Oil imports have a negative impact on the rupee and the current account deficit (the difference between the inflow and outflow of foreign exchange). The country needs a stable regime for oil," government sources said.

During the current financial year, the country has so far imported 220 mt of crude oil. It is believed that rising oil prices also influence Rupee's movement.

Friday's meeting is also believed to have discussed impact of US sanctions on Iran and devise long-term and short-term plans to find better and cheaper alternatives for oil needs.

Announcing a reduction on October 4, Jaitley had appealed to state governments to match the Centre's cut in fuel prices so that the total price cut would be Rs 5 per litre. The move will cost the Centre Rs 10,500 crore this financial year.

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