Petrol and diesel prices hit fresh highs on Thursday with rupee continued to plunge to an all-time low, making imports costlier. Petrol price in Delhi climbed to Rs 81.00 per litre, while in Mumbai it inched up to Rs 88.39. Hence, there is an increase of Rs 0.13 per litre in both the cities on Thursday, September 13, 2018.
On Thursday, a litre of diesel in the national capital was priced at Rs 73.08 and Rs 77.58 in Mumbai, the financial capital of India. The diesel prices were surged by Rs 0.11/litre from Rs 72.97 per litre and Rs 0.11/litre from Rs 77.45 per litre in Delhi and Mumbai respectively, according to the Indian Oil Corporation (IOC).
The Oil Marketing Companies (OMCs) make the revised prices effective from 6 am on September 13, 2018.
Petrol at Rs 81.00/litre (increase by Rs 0.13/litre) and diesel at Rs 73.08/litre (increase by Rs 0.11/litre) in Delhi. Petrol at Rs 88.39/litre (increase by Rs 0.13/litre) and diesel at Rs 77.58/litre (increase by Rs 0.11/litre) in Mumbai. pic.twitter.com/hbCt2l0IJ7— ANI (@ANI) September 13, 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 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.
Prices have been on fire since mid-August, rising almost every day due to a combination of a drop-in rupee value and rise in crude oil rates. While petrol price has risen by Rs 3.79 a litre and diesel by Rs 4.20 per litre so far.
Meanwhile, in a pre-poll sop bonanza amid skyrocketing fuel prices, Rajasthan Chief Minister Vasundhara Raje last week slashed value-added tax (VAT) on petrol and diesel by four per cent. The reduction in the VAT will cut the prices of petrol and diesel by Rs 2.5 per litre in the state. The changes were made applicable from 12 am on September 9.
Andhra Pradesh Chief Minister Chandrababu Naidu also announced a reduction of Rs 2 in the prices of petrol and diesel in the state. The revised prices came into effect from September 11.
Chief Minister Mamata Banerjee too announced a slash of Re 1 per litre in fuel prices across West Bengal.
Opposition parties under the leadership of Congress on Monday staged a nationwide agitation, protesting against the record-breaking fuel prices, reportedly due to high taxes. The Opposition wants the Narendra Modi government to bring petrol and diesel under the GST - a move that can reduce the fuel prices by Rs 15-18 per litre.
However, Finance Minister Arun Jaitley has remained tight-lipped on reducing excise duty to cushion spiralling fuel prices across India. Almost half of the retail selling price of the two fuel is made up of central and state taxes.