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At Rs 87.77/litre, petrol price set to touch 90 mark in Mumbai and Pune

Retail prices of fuels vary depending on local taxes, dealer commissions and the costs incurred in transporting them from refineries.

pune Updated: Sep 09, 2018 17:20 IST
HT Correspondent with Agencies
HT Correspondent with Agencies
Hindustan Times, Pune
pune,maharashtra,fuel price hike
The Centre currently levies a total excise duty of Rs 19.48 per litre of petrol and Rs 15.33 per litre on diesel. (Bloomberg)

While the price of petrol crossed the Rs 80 per litre mark in the capital on Saturday, in Pune, it further increased to Rs 87.77 per litre and diesel was sold at Rs 75.79 per litre.

In Delhi, it was for the first time ever as fuel prices continued a record-setting run precipitated by a fall in the value of the rupee and rising global crude oil prices. The price of diesel too rose to an all-time high.

On Saturday, petrol was priced at Rs 80.38/litre, up 39 paise from the day before, and diesel was Rs 72.51 per litre, up 44 paise, according to the price notification issued by state fuel retailers.

The costliest petrol being sold in India was in Mumbai, where it was priced at Rs 87.77 per litre.

Retail prices of fuels vary depending on local taxes, dealer commissions and the costs incurred in transporting them from refineries.

The rising price of fuel has triggered anger at the union government, which has said the trend was due to factors beyond its control. Opposition parties have called for a Bharat Bandh on Monday to protest against the rise.

In addition to being a sensitive political issue, rising fuel prices and the factors behind it threaten the government’s fiscal arithmetic. According to figures released by the Reserve Bank of India on Friday, India’s current account deficit expanded to 2.4% of GDP in the June quarter from 1.9% in the three-month period before due to the price of crude oil.

Higher prices of diesel, the fuel used in trucks, also threaten to push up inflation, which could in turn force the central bank to raise interest rates.

For now, the government has been non-committal on calls to cut taxes.

The Centre currently levies a total excise duty of Rs 19.48 per litre of petrol and Rs 15.33 per litre on diesel.

The Central government had raised excise duty on petrol by Rs 11.77 a litre and that on diesel by Rs 13.47 a litre in nine instalments between November 2014 and January 2016 to shore up finances as global oil prices fell, but then cut the tax just once in October last year, by Rs 2 a litre.

First Published: Sep 09, 2018 15:19 IST