Petrol, Diesel Prices Soar On Rupee Woes, Global Oil Rates
Petrol and diesel prices today scaled new highs as rates increased on account of rupee depreciation and rise in international oil rates.
The petrol price soared 28 paise per litre, and diesel rates went up by 22 paise, according to a price notification of state-owned oil marketing companies. Petrol in Delhi now costs Rs 81.28 per litre and diesel is priced at Rs 73.30 a litre.
In Mumbai, a litre of petrol will set you back by 88.67 per litre. The price of petrol in other metro cities such as Chennai costs Rs 84.49, and Rs 83.14 in Kolkata. Diesel costs Rs 77.82 per litre in Mumbai, Rs 77.49 per litre in Chennai and Rs 75.36 per litre in Kolkata, according to the notification.
Delhi has the cheapest fuel rates among all metros and most state capitals because of lower taxes. Mumbai has the highest sales tax or value-added tax.
A combination of a dip in rupee value against the U.S. dollar and rise in crude oil prices has led to a spike in pump prices since mid-August. Petrol price has since risen by Rs 4.20 per litre and diesel by Rs 4.53 - the most in any one-month period since the daily revision in fuel prices was introduced in June last year.
Rates vary from city to city and from pump to pump depending on local taxes and transportation cost. While petrol at pumps of Indian Oil Corporation Ltd. in Delhi cost Rs 81.28 per litre, the same at stations owned by Hindustan Petroleum Corporation Ltd. comes for Rs 81.37. Diesel at HPCL pumps in Delhi costs Rs 73.39 and comes for Rs 73.30 at IOC outlets.
IOC is India's largest oil firm with almost half of the market share. In Mumbai, petrol at IOC pumps costs Rs 88.67, while it comes for Rs 88.72 at Bharat Petroleum Corporation Ltd. outlets and Rs 88.75 at HPCL stations. Diesel in Mumbai at BPCL outlet costs Rs 77.87, at HPCL pumps Rs 77.90 and at IOC outlets Rs 77.82 per litre.
While crude oil rates flirted with the $80 per barrel mark, the rupee has plunged against the dollar. The combination of the two makes imports costlier. Domestic retail prices are benchmarked to international rates of the fuel.