State-run oil marketing companies (OMCs) reduced diesel prices by 20 paise after a month on Wednesday. On the other hand, petrol rates across the country remain steady as international crude oil prices rose marginally.

In Delhi, petrol continues to retail at Rs 101.84 per litre and nearly Rs 108 per litre in Mumbai. The price in Kolkata remains above Rs 102 per litre. Chennai, on the other hand, has witnessed a dip in fuel prices after the state government cut taxes by Rs 3 per litre.

There are still 25 cities where petrol is retailing above Rs 100 per litre.

Explained | How record fuel prices are making life difficult for Indians

Diesel prices also remain elevated across the country despite today’s rate reduction. Diesel is retailing at over Rs 90 per litre in most major cities except the national capital, where it costs Rs 89.67 per litre after the fresh reduction.

Economists are worried about the prolonged period of record fuel prices as the economy continues to suffer as a result. Though inflation moderated in July, higher fuel prices could force companies to hike the prices of their goods, ultimately impacting consumer demand.

BLAME GAME OVER HIGH OIL PRICES

Even as citizens suffer due to high fuel prices, the government has made it clear that it will not be able to provide any relief through tax cuts at the moment.

Finance Minister Nirmala Sitharaman recently said her “hands her tied” when it comes to providing relief in form of excise duty reduction on fuel. She blamed the previous UPA government’s “trickery” for the high fuel prices.

Read | My hands are tied, our govt paying for UPA’s trickery: Nirmala Sitaraman on high fuel prices

She also said the central government and states have to discuss the matter in detail to come up with a solution.

Retaliating against the finance minister’s statement, Congress leader Ajay Maken said the finance minister was making false claims on oil bonds.

The Congress leader said the Narendra Modi-led government has spent Rs 73,440 crore on servicing of oil bonds since 2014-15. On the contrary, the government has collected Rs 22.34 lakh crore through taxes on petroleum products.

Ajay Maken said official figures are enough to expose BJP’s “oil bond falsehood”. He added that the real reason behind high oil prices is not due to cost towards servicing oil bonds, but the reduction in fuel subsidy by 12 times and increase in taxes by 3 times.

Fuel rates in Indian cities: