Prices of petrol and diesel differ from state to state depending on the incidence of local taxes such as VAT and freight charges. (Representative image)
Petrol and diesel prices were kept unchanged on June 23 after reaching new record highs on the previous day, according to a price notification by state-owned fuel retailers.
With the hike on June 22, 28th in seven weeks, the petrol price hit an all-time high of Rs 103.63 a litre in Mumbai while diesel was priced at Rs 95.72 per litre in the financial capital. The city, on May 29, became the first metro in the country where petrol was being sold at over the Rs 100-a-litre mark.
Like Mumbai, in Delhi, Chennai and Kolkata also, both the fuels continued to be retailed at the previous day’s rate.
In Delhi, a litre of petrol cost Rs 97.50, while diesel priced at Rs 88.23.
The price of petrol was Rs 98.65 per litre and that of diesel was Rs 92.83 per litre in Chennai.
The fuel prices also remained the same in Kolkata where a litre of petrol was cost at Rs 97.38 while that of diesel priced at Rs 91.08.
Fuel prices differ from state to state depending on the incidence of local taxes such as VAT and freight charges. And because of this, petrol retails at over Rs 100 per litre mark in eight states and union territories — Rajasthan, Madhya Pradesh, Maharashtra, Andhra Pradesh, Telangana, Karnataka, Jammu and Kashmir and Ladakh.
Rajasthan levies the highest VAT on petrol and diesel in the country, followed by Madhya Pradesh, Maharashtra, Andhra Pradesh and Telangana.
Sri Ganganagar district of Rajasthan near the India-Pakistan border was the first place in the country to see petrol hitting Rs 100 a litre mark in mid-February and earlier this month it also earned the distinction of diesel crossing that psychological mark. Petrol in the city is sold at Rs 108.37 a litre – the highest rate in the country, and diesel comes for Rs 101.12.
Among the metros, petrol is already above Rs 100 in Hyderabad and Bengaluru, besides Mumbai.
Oil companies revise rates of petrol and diesel daily based on the average price of benchmark fuel in the international market in the preceding 15 days, and foreign exchange rates.
International oil prices have firmed up in recent weeks in anticipation of demand recovery following the rollout of vaccination programme by various countries. Also, the rupee has weakened against the US dollar, making imports costlier. Source