Petrol and diesel prices were hiked on Sunday, May 16, by 24 and 27 paise a litre. This has pushed fuel rates higher across the country to record highs, with petrol price in Mumbai nearing the Rs 100 per litre mark. A litre of petrol in the financial capital now costs Rs 98.88 per litre, while diesel is retailing at Rs 90.40 a litre.
Meanwhile, petrol price has already crossed Rs 100-mark in many cities in Rajasthan, Maharashtra, and Madhya Pradesh, and with Sunday's increase, rates in Mumbai too are inching towards the psychological mark.
This is the fifth fuel price hike this week and ninth such instance since May 4, when oil marketing companies ended a hiatus in rate revision after assembly elections in states like West Bengal.
In Delhi, petrol and diesel rates climbed to Rs 92.58 and Rs 83.22 per litre, as per the price notification of state-owned fuel retailers.
In Chennai, a litre of petrol now costs Rs 94.31 a litre while diesel is priced at Rs 88.07 per litre. In Kolkata, petrol and diesel cost Rs 92.67 a litre and Rs 86.06 per litre, respectively. In Bengaluru, petrol price stands at Rs 95.66 a litre, whereas diesel is priced at Rs 88.22 per litre.
Sri Ganganagar district of Rajasthan has the costliest petrol and diesel in the country at Rs 103.52 and Rs 95.99 per litre, respectively.
A litre of petrol in Bhopal costs Rs 100.63 per litre, whereas diesel is priced at Rs 91.59 a litre. In Anuppur district of Madhya Pradesh, petrol and diesel cost Rs 103.21 and Rs 93.98 per litre, respectively. Customers in the Parbhani district of Maharashtra will have to shell out Rs 101.25 a litre for petrol and Rs 91.30 per litre for diesel.
Fuel prices differ from state to state depending on the incidence of local taxes such as VAT and freight charges. Rajasthan levies the highest value-added tax (VAT) on petrol in the country, followed by Madhya Pradesh and Maharashtra.
In nine increases, petrol price has risen by Rs 2.19 per litre and diesel by Rs 2.49. Since March last year when the government raised excise duty on fuel to an all-time high, petrol price has increased by a record Rs 22.99 per litre (after accounting for a handful of occasions when rates fell) and diesel by Rs 20.93.
Oil companies, which have in recent months resorted to unexplained freeze in rate revision, had hit a pause button after cutting prices marginally on April 15. This coincided with electioneering hitting a peak to elect new governments in five states, including West Bengal.
No sooner had voting ended, oil companies indicated an impending increase in retail prices in view of firming trend in international oil markets.
Central and state taxes make up for 60 per cent of the retail selling price of petrol and over 54 per cent of diesel. The union government levies Rs 32.90 per litre of excise duty on petrol and Rs 31.80 on diesel.
Crude oil prices rose on May 14, reversing some of the previous day's sharp losses as stock markets strengthened and the US dollar slipped, though gains were capped by the coronavirus situation in major oil consumer India. Brent crude oil futures were up $1.54, or 2.3%, at $68.60 a barrel by 12:58 p.m. ET (1658 GMT) and West Texas Intermediate (WTI) crude was up $1.45, or 2.3%, at $65.27.