Chennai: Condemning the latest increase in fuel prices, the Tamil Nadu Chief Minister J Jayalalithaa today demanded that a new mechanism be implemented to decide the prices of petrol and diesel.

In a statement, she said that she had often pointed out that “determining prices of petrol and diesel based on international fuel rates is not right,” and demanded that the latest price-hike be rolled back.

Accusing the centre of not passing on the benefits of the global fall in crude oil prices to the masses by revising the excise duties, she said that the current price fixation mechanism helps oil marketing companies make profits. “The hike will result in increase in prices of goods which will severely impact the poor and middle classes,” she said.

Condemning the hike in petrol and diesel prices due to global trends, Jayalalithaa added that fuel prices must be based on factors like cost of imported crude and its refining.