At ₹120.51, petrol reaches an all-time high in city

State-run oil marketing companies raised auto fuel rates by 80 paise per litre on Wednesday, taking the total increase in rates in 16 days to ₹10 per litre

MUMBAI After yet another hike on Wednesday, a litre of petrol crossed the ₹120-mark and reached an all-time high of ₹120.51 in Mumbai. In Thane, the price hit ₹120.65 on Wednesday. Diesel was available for ₹104.77 in Mumbai and ₹104.90 in Thane.

Citizens are unhappy with the constant hike in fuel prices as it is inflating the cost of essential commodities. “Prices of essential products are also on the rise (Praful Gangurde)

State-run oil marketing companies raised auto fuel rates by 80 paise per litre on Wednesday, taking the total increase in rates in 16 days to ₹10 per litre.

Citizens are unhappy with the constant hike in fuel prices as it is inflating the cost of essential commodities. “Prices of essential products are also on the rise. One kg of rice that was ₹110 a month back is now ₹120. We have started saving fuel in our vehicles, but what do we do with the increase in prices of essential products? The government should ease the burden,” said Kavita Awasthi, a Ghatkopar resident.

In Maharashtra’s Parbhani, a litre of petrol touched the highest in the state at ₹123.47, while diesel was available at ₹106.04.

On Wednesday, Mumbai had the costliest petrol among metro cities, while diesel was costliest in Hyderabad at ₹105.49. A litre of petrol crossed ₹105 in New Delhi and was priced at ₹105.41, while diesel was available at ₹96.67. Auto fuels are costliest in the financial capital compared to Delhi, Chennai and Kolkata because of differences in VAT and other local levies.

Meanwhile, transporters have stated that the industry is on the verge of a collapse due to government indifference.

“The historic hikes in diesel prices, which happened 14 times in the last 16 days, is destroying the road transport sector and running operations into a loss. The entire road transport sector is struggling to survive. Many small operators have stopped functioning as they are not able to earn to meet the statutory compliances like taxes, insurance and permit fees. People are struggling to break even,” said Bal Malkit Singh, chairman, All India Motor Transport Congress (AIMTC).

He further added that more than 85% of the transporters are small operators with hardly one to five trucks and about 65% of them are self-employed. “There is all out rage against the rising fuel prices, all-time high inflation and the constant government insensitivity,” he added.

When the central government slashed excise duty on petrol and diesel, prices of fuel were reduced in November 2021. Maharashtra’s neighbouring states also reduced Value Added Tax (VAT) on petrol and diesel. However, the state made assurances to citizens, which they did not keep.

“The decision was earlier under consideration. All factors were examined last time and we will look into the hike now as well. Decision on VAT will be taken sometime soon.” said a senior official from the state government.

Another official said, “The state has not yet reduced the VAT because of financial constraints, but it should happen soon.”

The Congress and the Nationalist Congress Party (NCP) on Wednesday accused the Narendra Modi government of looting the poor with the constant fuel price hike.

“The Modi government continues to loot the poor through fuel price hikes! Petrol-diesel prices were increased by another 80 paise today with the prices going up by ₹10 in two weeks,” Maharashtra Congress chief Nana Patole tweeted. NCP spokesperson Clyde Crasto also took to Twitter to hit out at the BJP, terming the saffron party “lootjeevi”.

Union Minister for Petroleum and Natural Gas Hardeep Singh Puri on Tuesday defended the Central government over the issue of fuel price hike, comparing it with that of other countries, saying that India has merely seen a change of “only 5 per cent”.

“Fuel prices hiked in India are 1/10th of the change of prices in other countries. Comparing gasoline (petrol) prices between April 2021 and March 2022, the prices in the United States of America (USA) have increased by 51 per cent, Canada by 52 per cent, Germany by 55 per cent, the United Kingdom (UK) by 55 per cent, France by 50 per cent, Spain 58 per cent but in India only 5 per cent,” said Puri in Lok Sabha.

There had been a pause in the revision of fuel prices since November 4 last year, which ended on March 22, following the crude oil prices going upwards in the wake of the Russian military operations in Ukraine.

Prices are set to be raised further given the sharp jump in crude oil prices in the international markets. It will have a cascading impact on the prices of other items and lead to inflationary pressure and hurt growth while also impacting the prices of other items.

With inputs from agencies