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)
After a day of pause, petrol prices were hiked again by 23 to 26 paise while diesel of 6 to 7 paise on June 24, taking fuel prices across the country to a historic high, according to a price notification by state-owned fuel retailers.
Petrol price hit an all-time high of Rs 103.89 a litre in Mumbai, with an increase of 26 paise from the previous day price of Rs 103.63 per litre. 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.
Diesel also increased by 7 paise to retail at Rs 95.79 per litre in the financial capital, up from Rs 95.72 per litre.
In Delhi also the prices of petrol and diesel increased by 26 paise and 7 paise respectively. The price hike led to a litre of petrol retailing at 97.76 and diesel at Rs 88.30 in the national capital.
Chennai also saw an increase in fuel prices with petrol and diesel rises by 23 paise and 6 paise, respectively. The price of petrol was Rs 98.88 per litre and that of diesel was Rs 92.89 per litre in Chennai.
In Kolkata, the latest increase pushed the petrol price to Rs 97.63 per litre with an increase of 25 paise from the previous day price of Rs 97.38 per litre. Diesel price also increased by 7 paise and reached Rs 91.15 per litre in the city.
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.
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