Keeping close watch on petrol, and diesel rates: Pradhan

Petrol price rose to Rs 71.56 per litre in Delhi on Thursday, the highest since August 2014. Rates in Mumbai are almost touching Rs 80.

Diesel prices soared to their highest level of Rs 62.25 per litre in Delhi. It is being sold at Rs 66.30 in Mumbai, where the local sales tax or VAT rates are higher.

At an industry event, replying to reporters' questions on rising fuel prices, Pradhan said the Centre had in October cut excise duty on petrol and diesel by Rs 2 per litre.

Some states had followed it by reducing VAT. "Some others are yet to do that. I would urge states to reduce taxes," he said.

Asked if the Centre would cut excise duty, he said, "We are keeping a close watch on the pricing situation."

He said it was not under his ministry's purview to revises taxes. "It comes under finance ministry," he said.

He however side-stepped the query whether his ministry has suggested to the finance ministry to reduce excise duty.

Petrol and diesel prices have been on the rise since December 15, 2017. Diesel in Delhi on that day was priced at Rs 58.34, and in past one month has risen by Rs 3.91. Petrol price had during the period risen by Rs 2.49, according to oil companies.

Two of the most traded benchmarks on crude oil globally have risen the most since December 2014 - Brent touched $70 a barrel last week and WTI reached $64.77.

The rally in oil prices has renewed calls to the government to cut excise duty to cushion burden on common man.

The BJP-led NDA government has during its tenure cut excise duty only once - by Rs 2 per litre in October 2017 when petrol price had reached Rs 70.88 per litre in Delhi and diesel was priced at Rs 59.14.

Because of the excise duty cut, diesel prices had on October 4, 2017 come down to Rs 56.89 and petrol to Rs 68.38.

However, subsequent rally has wiped away all the gains and prices have touched new highs.