Petrol and diesel prices continued to rise Sunday, scaling new highs as the depreciating rupee and the relentless rise in international oil rates have made imports costlier. Petrol price has increased by 28 paise a litre and diesel by 18 paise per litre in Delhi on Sunday, September 16, 2018, according to the price notification issued by state fuel retailers. Hence, a litre of petrol now comes for Rs 81.91 while diesel is retailing at Rs 73.72 per litre.
On Sunday, the petrol and diesel prices were surged by 28 paise and 19 paise per litre in Mumbai, the financial capital of India respectively. The increase pushed the petrol price in Mumbai to a record high of Rs 89.29 per litre while Diesel rate touched its highest level of Rs 78.26 a litre.
"Petrol at Rs 81.91/litre (increase by Rs 0.28/litre) and diesel at Rs 73.72/litre (increase by Rs 0.18/litre) in Delhi. Petrol at Rs 89.29/litre (increase by Rs 0.28/litre) and diesel at Rs 78.26/litre (increase by Rs 0.19/litre) in Mumbai," the news agency ANI reported.
Petrol at Rs 81.91/litre (increase by Rs 0.28/litre) and diesel at Rs 73.72/litre (increase by Rs 0.18/litre) in Delhi. Petrol at Rs 89.29/litre (increase by Rs 0.28/litre) and diesel at Rs 78.26/litre (increase by Rs 0.19/litre) in Mumbai. pic.twitter.com/sTBpMOHzDC— ANI (@ANI) September 16, 2018
The Oil Marketing Companies (OMCs) made the revised prices effective from 6 am on September 16, 2018. However, the prices are not uniform across India and the rates vary due to various factors, the most important being the state value-added tax (VAT).
While Delhi has the cheapest fuel rates among all metros and most state capitals because of lower taxes, Mumbai has imposed 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.
In early September, Congress called for a nation-wide 'Bharat Bandh' to protest against the spiralling fuel prices. They blame the government's unwillingness to cut excise duty for high fuel prices and consumer burden.
Since August 16, Fuel prices have been surging up almost every day owing to a drop in rupee value and rise in crude oil rates. Almost half of the retail selling price of the two fuels is made up of central and state taxes.