New Delhi: Petrol prices in Delhi rose to over three year high in Delhi whereas In Mumbai it continued to be retailed at over Rs 80 per litre. According to data published by IOCL, in Delhi petrol price rose to Rs 72.43 per litre compared to Rs 72.38 yesterday. In Mumbai petrol is sold at Rs 80.30 per litre compared to Tuesday’s price of Rs 80.25.
The previous high for petrol price in the national capital was Rs 72.51 a litre on July 1, 2014.
In the other metro cities like Kolkata and Chennai, petrol was priced at Rs. 75.13 per litre, Rs. 75.12 respectively.
The previous highs in Mumbai and Kolkata and Chennai were Rs. 80.60 (August 2014), Rs. 75.46 (October 2014) and Rs. 74.91 (August 2014) respectively.
Similarly, there was an appreciation in diesel prices throughout metro cities. On Wednesday, prices of diesel in Delhi, Kolkata and Chennai touched record highs of Rs. 63.38 per litre, Rs 66.04 and Rs. 66.84 respectively.
In Mumbai, diesel was sold at Rs. 67.50 per litre — the highest level since August 2014 when it was priced at Rs. 67.26 a litre.
The rise in petrol and diesel price assumes significance as these are the mainstay of the transportation sector and will have a consequent upward effect on inflation.
In the last two months, petrol prices have gone up by over 5 per cent hurting consumers.
Several factors like production curbs by the Organization of the Petroleum Exporting Countries and geopolitical risks have led to a surge in crude oil prices to a three-year high.
Petrol and diesel prices are set every day based on international crude price and the rupee-dollar exchange rate. Although the rupee has appreciated in the recent past, international crude oil prices have surged due to production cut and global geopolitical risks.
Brent crude (which is a benchmark for India’s crude basket) price has surged from near $46 per barrel in July last year to $70 per barrel on Wednesday.
On the other hand, imposition of various state taxes and levies generally hikes prices. According to IOCL data, petrol price in Delhi consists of excise duty Rs 19.48 per litre and state VAT of Rs 15.40.
Currently, the two transportation fuels do not come under the ambit of the Goods and Services Tax (GST) regime.