Energy minister Jeff Radebe said this week that they had taken a once-off decision to only factor in a retail margin increase of 4.9c per litre of petrol for the month.
In Mumbai, the Petrol at Rs 86.56/litre (increase by Rs 0.31/litre) and diesel at Rs 75.54/litre (increase by Rs 0.44/litre). The price of Brent crude oil went up to $78.05 per barrel on Tuesday from $77.37 per barrel on Monday.
Petrol is priced at Rs 79.31 per litre and Rs 86.72 per litre in Delhi and Mumbai. Diesel costs Rs 71.34/litre in Delhi, Rs 75.74/litre in Mumbai, Rs 75.39/litre in Chennai and Rs 74.19/litre in Kolkata, according to daily price notification by oil marketing companies.
In a media statement, the department said that South Africa had witnessed "sustained increases in fuel prices for the past few months, which placed a strain on the consumers".
"I would like to mention two points, and both these subjects are external. OPEC (Organisation of the Petroleum Exporting Countries) had promised that it will raise production by one million barrels per day, which was not raised", he told reporters in Surat on Sunday. Due to sanctions on Tehran from the US, India had to reduce its imports from Iran, subsequently reducing the total fuel availability in the country.
Government blames falling rupee value fuel price hike.
Also, crude oil has gained Dollars 7 a barrel in a fortnight, driven by fears that the United States sanctions on Iran will likely contract supplies. There is a pressure on oil prices due to a decrease in production.
Petrol and diesel in Kolkata will now cost an additional 16 paise/litre and 19 paise/litre, respectively. "Secondly, global currencies have weakened against the USA dollar", he had said.
Petroleum prices, which are determined by the cost of crude oil in global markets, may continue to go up as the worldwide markets are under pressure due the U.S. sanctions on Iran and Saudi Arabia's decision to cut oil production.