Fuel prices on Friday scaled new highs as both the petrol and diesel rates were increased across India on Saturday, September 15, 2018. The spiralling fuel prices in metros are highly attributed to the rupee depreciation and rise in international oil rates since August 16.
While petrol price was increased by 35 paise a litre, diesel rates went up by 24 paise in Delhi, according to a statement by state-owned oil marketing companies. A litre of petrol now comes for Rs 81.28 in the national capital while diesel is priced at Rs 73.30 per litre.
In Mumbai, petrol is retailed at Rs 89.01 per litre while Diesel is being sold for a whopping amount of Rs 78.07 per litre. Hence, the petrol and diesel prices were surged by 34 paise and 25 paise per litre in the financial capital respectively.
"Petrol at Rs 81.63/litre (increase by Rs 0.35/litre) and diesel at Rs 73.54/litre (increase by Rs 0.24/litre) in Delhi. Petrol at Rs 89.01/litre (increase by Rs 0.34/litre) and diesel at Rs 78.07/litre (increase by Rs 0.25/litre) in Mumbai," the news agency ANI reported.
Petrol at Rs 81.63/litre (increase by Rs 0.35/litre) and diesel at Rs 73.54/litre (increase by Rs 0.24/litre) in Delhi. Petrol at Rs 89.01/litre (increase by Rs 0.34/litre) and diesel at Rs 78.07/litre (increase by Rs 0.25/litre) in Mumbai. pic.twitter.com/6nkdd1bRaG— ANI (@ANI) September 15, 2018
Delhi has the cheapest fuel rates among all metros and most state capitals because of lower taxes. Mumbai has the highest sales tax or value-added tax (VAT). While Mumbai and Telangana levy the highest VAT (Value Added Tax) of 39.12 per cent and 26 per cent on petrol and diesel respectively, Delhi charges a VAT of 27 per cent on petrol and 17.24 per cent on diesel.
Rates vary from city to city and from the pump to pump depending on local taxes and transportation cost. While petrol at pumps of Indian Oil Corp (IOC) in Delhi cost Rs 81.28 per litre, the same at stations owned by Hindustan Petroleum Corp Ltd (HPCL) comes for Rs 81.37. Diesel at HPCL pumps in Delhi costs Rs 73.39 and comes for Rs 73.30 at IOC outlets.
In Mumbai, petrol at IOC pumps costs Rs 88.67, while it comes for Rs 88.72 at BPCL outlets and Rs 88.75 at HPCL stations. Diesel in Mumbai at BPCL outlet costs Rs 77.87, at HPCL pumps Rs 77.90 and at IOC outlets Rs 77.82 per litre. IOC is India's largest oil firm with almost half of the market share.
A combination of a dip in rupee value against the US dollar and rise in crude oil prices has led to a spike in pump prices since mid-August. Petrol price has since risen by Rs 4.20 per litre and diesel by Rs 4.53 - the most in any one-month period since the daily revision in fuel prices was introduced in June last year.
While crude oil rates flirted with the USD 80 per barrel mark, the rupee has plunged against the dollar. The combination of the two makes imports costlier. Domestic retail prices are benchmarked to international rates of the fuel.
(With inputs from agencies)