Petrol prices hit Rs 91-mark in Mumbai today (1 October). The fuel price has gone up by 24 paise to Rs 91.08 per litre. The price of petrol had already crossed the Rs 90-mark in more than 20 of Maharashtra’s 36 districts.
In other metros too, petrol prices have seen a hike. In Delhi, petrol price saw a 33 paise jump at Rs 83.73 per litre. In Chennai, the fuel price 25 paise to Rs 87.05 per litre while in Kolkata the price of petrol was up 23 paise at Rs 85.33 per litre, according to Indian Oil Corporation (IOC)
Diesel prices too matched steps with petrol fares. Diesel prices in Mumbai were up by 32 paise at Rs 79.72 per litre. In Delhi, diesel is costly by 30 paise at Rs 75.09 per litre; in Chennai it was up 32 paise at Rs 79.40 per litre while in Kolkata, prices were up 30 paise at Rs 76.94 per litre.
Earlier last week, Dharmendra Pradhan, Minister of petroleum and natural gas, said reducing taxes on fuel will not have any lasting impact due to the continuing volatility in crude prices.
Blaming global factors for the skyrocketing prices of petroleum products in the country, Pradhan said reducing taxes on oil products by the Centre and the states will not have any lasting impact due to the volatility in crude prices.
Representational image. Reuters
“The basic problem is that crude prices are volatile.
The effect of any measures, including reduction in VAT by the states and the Excise duty by the Centre will not last long due to the volatility in crude prices. And as long as there is no stability in crude prices, this kind of assessment will not be appropriate,” he said.
The minister, however, said higher prices is a matter of concern and government is finding ways to offer some relief to the public.
“Currencies across the world are falling due to the strengthening of the US dollar. The main reason for the rise in petroleum products has been the rupee depreciation and a cut in crude production by the producing countries,” he said.
Petrol prices have crossed Rs 90 a litre in many states while diesel is selling at over Rs 80 a litre, due to high VAT rates that states charge on these items. While Maharashtra has the highest VAT on oil products in the country to the tune of over 39 percent, making almost 53 percent of the price that a motorist pays is taxes, Goa, Delhi and Chandigarh have the lowest VAT rates.
Ahead of the US sanctions, kicking in from 4 November on Iran, crude prices have been on an upward spiral. Since the beginning of this January, crude has rallied over 30 percent, when the rupee has lost almost 15 percent.
The country meets 82 percent of its oil demand through imports.