The price of petrol in Mumbai has risen to Rs 79.48 per litre, a level last seen in August 2014 in the country's financial capital. Petrol and diesel prices have hit three-year highs in some cities yet there are no public protests.
Speaking to journalists after a meeting to review the daily pricing regime in petrol and diesel by Public Sector Oil Marketing Companies Pradhan said, "Petrol and diesel in the country are benchmarked to the worldwide price of these commodities".
Of course, a big part - more than half of the price that you pay for petrol and diesel - consists of various centre and state taxes, which remain there even after the implementation of GST, as the two commodities were kept out of the ambit of the most radical tax reform that India has ever seen since independence.
Before June 15 this year, state oil companies used to fortnightly revise prices to align them with global rates and factor in currency fluctuation.
The daily price revision means an instant transfer of a rise or decline in global oil price to the consumer.
Earlier, when price changes were passed on only after a fortnight, sometimes fluctuations evened out within a fortnight without affecting prices at the petrol pumps.
"Should prices be hiked by Rs 2.50 or Rs 3 per litre in one go or they should be spaced out in small doses", he asked.
Earlier, the state-run oil marketing companies used to review and revise retail fuel prices every fortnight on the basis of global crude oil prices, while the revision took effect from midnight.
Meanwhile, the daily travellers, all over the nation, have criticised the government, while also requesting them to reconsider the dynamic surge in pricing.
A working Saurav Banerjee from Kolkata said, "In the last six months it was still manageable.But now daily, there has been a price hike and there is no reduction".
"That situation has not come where we should relook at tax structure", Pradhan told reporters on the sidelines of an industry event here. A litre of petrol in Delhi was priced at Rs. 70.38, while that in Chennai was sold at Rs 72.95, according to the Indian Oil Corporation.