Following the hike in rates by state-owned fuel retailers for the second consecutive day, petrol prices in India’s financial capital rose of ₹90.83 per litre on Thursday, January 7. While diesel prices shot up to an all-time high of ₹80.78.
The reports suggest that the rise in fuel prices is another threat to the already high inflation in the country.
After nearly a month-long hiatus, the petrol rate was hiked by 26 paise at city fuel pumps. Diesel went up by 27 paise. Both auto fuels have risen by more than ₹14 over the last 10 months — one of their steepest in recent years.
Besides, the prices rose in Thane and Navi Mumbai too, with petrol retailing at ₹90.72/litre and diesel at ₹80.9.
Though petrol and diesel rates are to be revised on a daily basis in line with benchmark international price and foreign exchange, government-controlled fuel retailers have been moderating rates since the pandemic broke out.
Various factors, including rupee to the dollar exchange rate, cost of crude oil, global cues and demand for fuel, impact their price. The price includes excise duty, VAT and dealer commission.
Petrol taxed at up to 250-300 per cent of basic cost Value-added (VAT) varies from state to state, and is among the highest in Maharashtra. Similarly, the government charges VAT on diesel at 24 per cent on the basic cost, transport cost and central excise, besides a cess of ₹3 per litre, said a petrol dealer, requesting anonymity.
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