Petrol price in Delhi breached Rs 79 per litre mark on Monday, hitting a fresh high.
The Department of Energy Minister, Jeff Radebe on Monday announced fuel prices will remain unchanged. The difference between the cost of petrol in Delhi and Mumbai has also widened to Rs 7.5 per litre due to difference in sales tax or VAT.
Diesel prices per litre for Mumbai, Chennai and Delhi are Rs 75.54, Rs 75.19 and Rs 71.15.
Crude oil has gained $7 a barrel in a fortnight, driven by fears that the USA sanctions on Iran will likely contract supplies although the price rise has still been limited due to the hope the increased production by Saudi Arabia, Russia and the United States will make up for much of the shortfall.
It is changed every month on the first Wednesday of the month. The country recently introduced the monthly pricing formula to compensate the prices as per the global crude oil price variation.
On Sunday, retail rates of fuel had witnessed a hike with petrol being sold at Rs 78.84 per litre and diesel at Rs 70.76 per litre in New Delhi. Just like India, the Nepali rupee, which is pegged with India's currency, is also not performing well against the dollar.
On the increasing petrol and diesel prices, Union Minister for Petroleum and Natural Gas Dharmendra Pradhan had claimed that rise in crude oil price in the global market and devaluation of the Indian rupee against the US Dollar, are two factors responsible for the hike.
A litre of petrol in Mumbai costs Rs?86.56 on Monday. The country imports around 8.4 million barrels a day. Since Iran is also a part of the OPEC group, fuel prices could see a spike after the US sanctions, which have officially been cast by US President Donald Trump on August 7. In Delhi, petrol stood at Rs 76.31 per litre on August 1.