Petrol, diesel price hiked again; petrol price nears ₹99 in Mumbai

A litre of petrol in Mumbai now comes for ₹98.88 and diesel is priced at ₹90.40 per litre

Petrol price on May 16 was increased by 24 paise per litre and diesel by 27 paise, pushing rates across the country to record highs and that of petrol in Mumbai to near ₹99 a litre.

The increase led to rates in Delhi climbing to ₹92.58 per litre and diesel to ₹83.22, according to a price notification of State-owned fuel retailers.

Rates had already crossed ₹100-mark in several cities in Rajasthan, Madhya Pradesh and Maharashtra and with the latest increase, price in Mumbai too was inching towards that level.

A litre of petrol in Mumbai now comes for ₹98.88 and diesel is priced at ₹90.40 per litre.

Fuel prices differ from State to State depending on the incidence of local taxes such as VAT and freight charges. Rajasthan levies the highest value-added tax (VAT) on petrol in the country, followed by Madhya Pradesh and Maharashtra.

This is the ninth increase in prices since May 4 when the State-owned oil firms ended an 18-hiatus in rate revision they observed during assembly elections in States like West Bengal.

Sri Ganganagar district of Rajasthan had the costliest petrol and diesel in the country at ₹103.52 per litre and ₹95.99 a litre, respectively.

In nine increases, petrol price has risen by ₹2.19 per litre and diesel by ₹2.49.

Since March last year when the government raised excise duty on fuel to an all-time high, petrol price has increased by a record ₹22.99 per litre (after accounting for a handful of occasions when rates fell) and diesel by ₹20.93.

Oil companies, which have in recent months resorted to unexplained freeze in rate revision, had hit a pause button after cutting prices marginally on April 15. This coincided with electioneering hitting a peak to elect new governments in five States including West Bengal.

No sooner had voting ended, oil companies indicated an impending increase in retail prices in view of firming trend in international oil markets.

Central and State taxes make up for 60% of the retail selling price of petrol and over 54% of diesel. The union government levies ₹32.90 per litre of excise duty on petrol and ₹31.80 on diesel.

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