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Fuel prices hiked for 10th time, petrol inch closer to ₹100-mark in Mumbai
Since the global prices of these items are mostly a pass through into domestic prices, a surge in global commodity prices have put significant pressure on the WPI.
The prices of petrol and diesel were hiked by 27 paise and 29 paise per litre respectively on Monday. This was the 10th hike in fuel prices in the month of May.
After the latest increase in price, the petrol price in Mumbai climbed to ₹99.14 per litre, while the cost of per litre diesel is now ₹90.71.
In the national capital, a litre of petrol now costs ₹92.85, while a litre of diesel is retailing at ₹83.51 per litre.
In Kolkata, a litre of petrol is now available at ₹92.92 and per litre disel is priced at ₹86.35. In Chennai, the price of per litre petrol is ₹94.69 and that of diesel is ₹88.48.
So far, the fuel prices have been increased by over ₹2 per litre in May, after a gap of almost two months when prices were kept artificially low during the state assembly elections.
Rates had already crossed ₹100-mark in several cities in Rajasthan, Madhya Pradesh and Maharashtra.
Fuel prices vary in different states depending on the incidence of local taxes such as Value Added Tax (VAT) and freight charges. The central and state government-imposed taxes contribute around 60% of the retail price of petrol and 54% of the final diesel price.
On Monday, the wholesale price-based inflation (WPI) shot up to an all-time high of 10.49 per cent in April, on rising prices of crude oil and manufactured items.
This was the fourth straight month of uptick seen in the WPI. In March, 2021, it was 7.39 per cent.
Since the global prices of these items are mostly a pass through into domestic prices, a surge in global commodity prices have put significant pressure on the WPI.
