GST is the only way to have a rational price mechanism in petroleum products.
While petrol prices have increased by Rs 6.08 to reach Rs 69.12 a litre in Delhi, the highest since August 2014, diesel rates have risen by Rs 3.65 to Rs 57.01. Albeit, of late, the rise in the retail fuel prices was seen due the impact of hurricanes Harvey and Irma on the worldwide fuel markets, Dharmendra Pradhan said, adding that the situation is likely to ease out in the coming days.
He said dynamic pricing ensures that the benefit of even the smallest change in worldwide oil prices can be passed down the line to the dealers and the end-users.
"But the petrol prices are increasing day by day".
Ever since the rollout of this system, prices of fuel at first dipped by as much as Rs 3.45 per litre in a span of 13 days.
The prices are revised every day based on crude price movements.
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State-owned oil companies in June dumped the 15-year-old practice of revising rates on 1st and 16th of every month and instead adopted a dynamic daily price revision to instantly reflect changes in cost.
Meanwhile, the daily travellers, all over the nation, have criticised the government, while also requesting them to reconsider the dynamic surge in pricing.
Refuting the news reports of a possible government intervention to keep the retail fuel prices under check, Oil Minister Dharmendra Pradhan categorically said that the government has "no business to interfere in the day-to-day functioning of the oil marketing companies". "It should come down and is going beyond the common man's budget", he told ANI.
While Mumbai topped the price chart with customer shelling out as much as Rs. 79.48, Kolkata followed behind at Rs. 73.12.
Diesel is being retailed at Rs. 58.72 per litre, Rs. 61.37 per litre, Rs. 62.37 per litre and Rs. 61.84 per litre respectively.