Fuel price hiked again: Diesel breaches Rs 79-mark in Mumbai

New Delhi, Sep 28: Fuel prices continued to soar on Friday. In the national capital, petrol and diesel prices were Rs 83.22 per litre (an increase of 22 paise) and Rs 74.42 per litre (an increase of 18 paise), respectively. In Mumbai, petrol and diesel prices were Rs 90.57 per litre (an increase of 22 paise) and Rs 79.01 per litre (an increase of 19 paise), respectively.

Even in other metro cities including Kolkata, Bengaluru and Chennai petrol is being retailed at Rs 85.03, Rs 86.52 respectively. Likewise a litre of diesel in these metro cities is being sold at Rs 76.27, Rs 74.80 and Rs 78.69 respectively. Delhi has the cheapest fuel rates among all metros and most state capitals because of lower taxes.

Petrol, diesel rates vary from city to city and from pump to pump depending on local taxes and transportation cost.

The Centre currently levies an excise duty of Rs 19.48/litre on petrol and Rs 15.33 per litre on diesel. Various states levy Value Added Tax (VAT) on petrol and diesel. Mumbai has the highest VAT of 39.12 percent on petrol, while Telangana levies the highest VAT of 26 percent on diesel.

Petroleum minister Dharmendra Pradhan on September 26 blamed global factors for the increase in prices of petroleum products. Pradhan said that reducing taxes on these items will not have any lasting impact due to the continuing volatility in crude prices.

"The basic problem is that crude prices are volatile. The effect of any measures, including reduction in VAT by the states and the Excise duty by the Centre will not last long due to the volatility in crude prices," Pradhan said.

Pradhan, however, said higher prices is a matter of concern and government is finding ways to offer some relief to the public.