After four days of back to back surges, the petrol price is now at a record high in Delhi and Mumbai. A litre of petrol costs Rs 91.27 in the national capital. In Mumbai, petrol is retailing at Rs 97.61 per litre. Petrol price has risen to ₹102 per litre in some parts of Rajasthan and Madhya Pradesh. However, state-run fuel retails have kept the petrol and diesel prices unchanged on Saturday.
All you need to know about the the recent price hike in petrol and diesel
1) On Friday, petrol sold for Rs 102.15 a litre in Sri Ganganagar in Rajasthan and Rs 101.86 in Anuppur in Madhya Pradesh. This was the second time that petrol price soared past 100-mark in India since February. It must be noted that Rajasthan levies the highest value-added tax (VAT) on petrol in the country, followed by Madhya Pradesh.
2) Petrol and diesel prices depend on international crude prices, foreign exchange rates and demand for fuel. Brent crude futures is trading near $70 a barrel in the international market.
3) After a hiatus of 18 days, state-owned fuel retails increased the price this week. In the last four days, petrol price has increased by 88 paise per litre and diesel by ₹1. In Delhi, diesel is retailing at Rs 81.73/litre. A litre of diesel will cost you Rs 86.65 in Chennai. Diesel is priced at Rs 84.57 for a litre in Kolkata.
4) Fuel prices differ from state to state depending on the incidence of local taxes such as VAT and freight charges. Central and state taxes make up for 60% of the retail selling price of petrol and over 54% of diesel. The union government levies Rs 32.90 per litre of excise duty on petrol and Rs 31.80 on diesel.
5) On Friday, Brent crude oil settled lower by 87 cents, or 1.3%, at $68.09 a barrel. West Texas Intermediate (WTI) U.S. crude futures dropped 92 cents, or 1.4%, to $64.71, according to Reuters. In view of firming trends in international oil markets, the oil companies indicated an impending increase in retail prices.