Diesel prices continue to break all-time record; Petrol rates at new high

The fuel prices in India touched a new high on Monday, September 3, 2018, with the Oil Marketing Companies (OMCs) increased the rates of both petrol and diesel for the ninth consecutive day. Inching above the all-time cost, the petrol and diesel prices peaked to a new high across all metro cities, including Delhi, Mumbai, Chennai, Kolkata and Bengaluru.

The record high petrol prices in Delhi is Rs 79.15 per litre while diesel is being sold at Rs 71.15 per litre on Monday. Hence, there is an increase in the Petrol price in the city by Rs 0.31/litre and in the Diesel price by Rs 0.39/litre.

Mumbaikars, who are the worst affected due to this continuous fuel price hike, on Monday witnessed a surge Rs 0.31/litre and Rs 0.44/litre in the petrol and diesel prices respectively. On Monday, Petrol can be purchased at Rs 86.56/litre while diesel is retailing at a price of Rs 75.54/litre in Mumbai.

Petrol at Rs 79.15/litre (increase by Rs 0.31/litre) and diesel at Rs 71.15/litre (increase by Rs 0.39/litre) in Delhi. Petrol at Rs 86.56/litre (increase by Rs 0.31/litre) and diesel at Rs 75.54/litre (increase by Rs 0.44/litre) in Mumbai pic.twitter.com/LCcn8S22p4

— ANI (@ANI) September 3, 2018

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The revised rates are effective from 6 am on September 3, 2018. In Delhi, the fuel is cheapest among all metros and most state capitals in comparison to other cities due to lower sales tax or VAT. While Mumbai has the highest VAT (Value Added Tax) of 39.12 per cent on petrol. Delhi charges a VAT of 27 per cent on petrol and 17.24 per cent on diesel.

The fuel prices have been on the rise since August 16 following a record deep in rupee against the US dollar. The government, however, hopes that the rally in global rates is temporary and will go downwards soon.

Apart from the devaluation of the Indian rupee, the rice in crude oil prices in the international market is another key issue which is responsible for the continuous hike.

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State-owned oil firms had in mid-June last year dumped the 15-year practice of revising rates on 1st and 16th of every month in favour of daily price revisions. Since then, the fuel prices have been revised with effect from 6 am on a daily basis.