Since the dynamic pricing system resumed on May 14, petrol and diesel prices have risen by Rs 3.80 and Rs 3.38, respectively, in Delhi. On Monday, petrol prices in Mumbai stood at Rs 86.08 a litre, in Kolkata Rs 80.76 and in Chennai Rs 81.11.
Petrol prices across the four metros have been increased by over Rs 3 per litre in the past 16 days, leading to a political slugfest.
He also argued that several reasons were responsible for the hike in prices of petrol and diesel, including the political conditions in oil producing countries and the global market.
In states, petrol cost Rs 82.76 a litre in Hyderabad and in Bangalore Rs 79.40 a litre. The revised prices are applied at the fuel stations with effect from 6 am every day.
Therefore, Brent crude futures were up 31 cents, or 0.41 percent, at $75.61 a barrel at 0213 GMT, after settling at their lowest since May 8 at $75.30. Whereas, Mumbai and Chennai saw the most hikes - by as much as Rs 3.59 per litre and Rs 3.62 per litre respectively.
In April, Pradhan had said the Centre and the state governments have been considering bringing the petroleum products under the ambit of Goods and Services Tax.
Among states, diesel in Bangalore cost Rs 70.25 a litre.
Critics of the government say fuel prices were kept in check to woo voters in the southern Indian state.
As the Centre has come under fire over the fuel price hike, Union Petroleum and Natural Gas Minister Dharmendra Pradhan earlier assured the public that the government will soon come out with a solution to tackle the situation. "This is the most plausible scenario under the current circumstances", the SBI report said.
As petrol and diesel are left outside GST, their prices and quantum of increase vary from state to state depending upon local taxes. Simply passing on higher prices to consumers will certainly hurt its prospects in the election next year.
Today, diesel price in New Delhi was raised to Rs 69.31 per litre, higher by 14 paise compared to previous day's price of Rs 69.17 per litre. "The Centre is working out a plan to control the increase in fuel prices", he added.