Published 15:18 IST, June 29th 2020
Centre says 'oil demand was down by 70-80%' as fuel prices hiked for 22nd time in 3 weeks
As diesel prices was hiked for the 22nd time, Union Petroleum Minister Dharmendra Pradhan, on Monday, said that the Indian economy, is in challenging times
- Economy News
- 2 min read
As diesel prices hit a new high after being hiked for the 22nd time, Union Petroleum Minister Dharmendra Pradhan, on Monday, said that the world, as well as Indian economy, is going through challenging times. He added that due to reduce in energy demand in April-May was down by 70-80% due to lockdown, which has impacted the economy. Currently, India's diesel prices are at Rs. 80.53 per litre, which varies from state to state.
Centre: Oil demand was down by 70-80%
He added, "Now the demand is picking up again. No one can predict oil prices, but we've estimated that as prices in international markets stabilise, prices in India will also stabilise".
Diesel prices and Petrol prices shoot up
On Monday, Diesel price scaled a new high after prices were hiked for the 22nd time in just over three weeks, taking the cumulative increase to Rs 11.14 per litre. Petrol price was increased by 5 paise per litre and diesel 13 paise a litre across the country, according to a price notification of state oil marketing companies. While the diesel rates have been hiked for the 22nd time since June 7, petrol price has been raised on 21 occasions.
Diesel rates have been increased to Rs 80.53 per litre from Rs Rs 80.40. Rates vary from state to state depending on the incidence of local sales tax or VAT. In Mumbai, petrol price went up from Rs 87.14 per litre to Rs 87.19, while diesel was hiked to Rs 78.83 from Rs 78.71, while in Delhi, a litre of petrol now comes for Rs 80.43 per litre as compared to Rs 80.38 earlier. The cumulative increase since the oil companies started the cycle on June 7 now totals to Rs 9.17 for petrol and Rs 11.14 in diesel.
Oil crisis across the globe
Since March, fall in crude oil prices has hit the global economy. Domestic crude prices have fallen down from $64/barrel in January to $55/barrel in February, as per reports. Oil prices have reportedly slumped lowest since 1991 after Saudi Arabia slashed its prices in an alleged price war with Russia. Amid the massive drop in global oil demand due to global lockdown, the two finally came to a negotiation that they will cut down production by 23% as US shale companies pressured the OPEC members to end the oil war.
Updated 15:33 IST, June 29th 2020
