Petrol Friday crossed the Rs 90-mark in Mumbai as a dip in the value of 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 price notification of state-owned oil firms.
In Mumbai, petrol crossed Rs 90-mark for the first time ever.
The fuel now costs Rs 90.08 at Indian Oil Corp (IOC) outlets in the city while it is priced at Rs 90.17 at Hindustan Petroleum Corp Ltd (HPCL) outlets and Rs 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 USD 80 per barrel from USD 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 companies, refinery gate price of petrol, without considering any central or state tax and dealer’s commission, is Rs 42.04 per litre. The same for diesel is Rs 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 Rs 3.66 per litre and that on diesel is Rs 2.52.
Since mid-August, the petrol price has risen by Rs 5.58 a litre and diesel by Rs 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 Rs 78.58 per litre, at HPCL’s stations for Rs 78.67 and comes for Rs 78.67 at BPCL pumps.