Petrol price inched towards the Rs 100-mark in Mumbai on Thursday after fuel rates were hiked again. Petrol price was increased by 24 paise per litre and diesel by 29 paise a litre in the national capital, according to a price notification of state-owned fuel retailers. The hike – 14th this month – pushed petrol and diesel prices to record-high levels across the country.
Petrol price in Delhi rose to Rs 93.68 a litre and diesel to Rs 84.61 a litre. In Mumbai, petrol price climbed to Rs 99.94 a litre and diesel to Rs 91.87 per litre. Rates had already crossed the Rs 100-mark in several cities in Rajasthan, Madhya Pradesh and Maharashtra and with the latest increase, the price in Mumbai too was inching towards that level.
Here is looking at the price difference of diesel and petrol in four metro cities on May 28, 2021.
Rates had already crossed Rs 100-mark in several cities in Rajasthan, Madhya Pradesh and Maharashtra and with the latest increase, price in Mumbai too was inching towards that level.
But why are fuel prices constantly on the rise?
Fuel prices differ from state to state depending on the incidence of local taxes such as VAT and freight charges. Rajasthan levies the highest value-added tax (VAT) on petrol in the country, followed by Madhya Pradesh and Maharashtra.
The excise tax levied by the Central and state government one of the reasons behind fuel price hike.
Fuel rates in the international market determine the rates of oil prices in India. When global fuel prices go up, OMCs hike prices in the country.