Published: Tue, October 16, 2018
Finance | By Loren Pratt

AA: Predicted fuel price hike may look different at end of October

AA: Predicted fuel price hike may look different at end of October

This is according to the Automobile Association (AA) of South Africa which has warned of further exorbitant petrol price increases that are due to overburden an already embattled local economy.

The Congress on Monday hit out at Prime Minister Narendra Modi for doing "electoral drama" ahead of elections in five states over rising prices of petrol and diesel and said that the government has fleeced the common people through "draconian taxation" of Rs 13 lakh crore. Petrol prices are now set for a 40 cents-a-litre increase, while diesel could spike by 70 cents and 65 cents respectively.

Government figures show the average cost of a litre of petrol rose by 0.7p in the past week to £1.31 at United Kingdom forecourts despite wholesale costs falling. Petrol, too, in Mumbai is down from the peak Rs 91.34 a litre on October 4 to Rs 88.18 today. In the meet, PM discussed the measures to control the continuously rising fuel prices and the USA sanctions on Iran due to come into effect from November 4.

It now costs Rs 75.46 per litre in Delhi, a shade higher than Rs 75.45 a litre price when the government on October 4 announced the excise duty cut in 12 months. In March, a litre of unleaded 95 petrol cost R13.76.

They were later joined by Chhattisgarh, Jharkhand, Tripura, Uttar Pradesh, Madhya Pradesh, Himachal Pradesh, Haryana Assam, Uttarakhand, Goa, Arunachal Pradesh and Bihar with similar moves. Diesel in these two states is cheaper by Rs 2.02 and Rs 1.72 per litre, respectively.

Petrol has gone up by 10% in the past seven months, while diesel has risen by 11% over the same period. The petrol was priced at Rs 88.18 per litre and diesel was being sold at Rs 79.11 per litre. This was followed by another round of Rs 2.5 reduction in sales tax or VAT by several states.

Like this: