Economy

Petrol crosses ₹90-mark in Mumbai

PTI New Delhi | Updated on September 24, 2018 Published on September 24, 2018

Fuel prices in Delhi are the cheapest in all metros and most state capitals. File Photo   -  The Hindu

Petrol on Monday crossed the ₹90-mark in Mumbai as a dip in the value of the rupee and rise in international oil prices pushed rates across the country to new all-time high.

Petrol prices were hiked by 11 paise per litre and diesel by 5 paise, according to a price notification of state-owned oil firms.

The hike pushed petrol price in Delhi to ₹82.72 per litre and diesel to ₹74.02.

In Mumbai, petrol crossed ₹90-mark for the first time. The fuel now costs ₹90.08 at Indian Oil Corp outlets in the city while it is priced at ₹90.17 at Hindustan Petroleum Corp Ltd (HPCL) outlets and ₹90.14 at Bharat Petroleum Corp Ltd (BPCL) stations.

India is the third largest importer of crude oil and rising international oil prices are inflating domestic transport fuel costs in a strong demand environment. Brent, the benchmark for more than half the world’s oil, climbed to ₹80 per barrel from ₹71 in the last five weeks, and the Indian rupee lost ground against the dollar by 5-6 per cent during the same period, resulting in expensive crude imports.

Delhi has the cheapest fuel rates among all metros and most State capitals because of lower taxes. Mumbai has the highest sales tax or VAT.

According to oil marketing companies, refinery gate price of petrol, without considering any central or state tax and dealer’s commission, is ₹42.04 per litre. The same for diesel is ₹45.34.

Retail rates are arrived at after adding excise duty, which is charged by the Central government, commission paid to petrol pumps dealers and VAT, charged by the State governments.

Dealer’s commission on petrol currently is ₹3.66 per litre and that on diesel is ₹2.52.

Since mid-August, the petrol price has risen by ₹5.58 a litre and diesel by ₹5.3 - the most in any month since the daily price revision was introduced in mid-June last year.

Diesel at IOC’s outlets in Mumbai costs ₹78.58 per litre, at HPCL’s stations for ₹78.67 and comes for ₹78.67 at BPCL pumps.

Petrol in Kolkata costs ₹84.63 per litre and diesel comes for ₹75.95. In Chennai, petrol is priced at ₹86.08 and diesel at ₹78.35.

Published on September 24, 2018

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