Considering steps to keep fuel prices in check: Dharmendra Pradhan

Prices at the pump have surged on the back of rallying international markets for crude oil

Kochi, Kerala, 01/08/16. View of a petrol bunk at Irubbanam in Kochi . Photo:H.Vibhu.

The Central government is looking at ways to keep rising fuel prices in check, according to Minister for Petroleum and Natural Gas Dharmendra Pradhan.

Retail rates of diesel and petrol have touched record highs in New Delhi and Mumbai.

Prices at the pump have surged on the back of rallying international markets for crude oil, which last week

hit their strongest since late-2014 amid ongoing production cuts led by the Organization of the Petroleum Exporting Countries (OPEC).

“Various alternatives are being looked at,” Mr. Pradhan said in a televised speech on Monday, adding that he would “work out something soon”. He did not give details.

Opposition leaders have criticised the government for failing to rein in rising fuel prices. India is particularly at risk from stronger global prices for crude oil as it is the No.3 importer of the commodity, buying about 80% of its oil needs.

On Monday, industry group FICCI called for an immediate cut in the excise duty on oil imports.

The cost of the growing thirst for oil around Asia will surpass $1 trillion this year, about twice as much as in 2015 and 2016, as oil prices touch $80 a barrel and continental demand hits a record.