Fuel prices hiked again, petrol in Mumbai just 29 paise away from century mark

After a day hiatus on Monday, petrol and diesel prices on Tuesday have been hiked again, scaling new heights across the country. This time, both petrol and diesel prices have been increased by 23 paise per litre and 25 paise a litre, respectively.

With the latest price hike on Tuesday, petrol rates in Delhi have climbed to ₹93.44 a litre and diesel rose to ₹84.32 per litre.

In Mumbai, the business capital of India, motor fuel prices scaled an all-time high. Petrol in Mumbai now costs ₹99.71 a litre, only 29 paise away from the century mark. On the other hand, diesel in the city is priced at ₹91.57 per litre.

Petrol prices have already crossed the ₹100 mark in several cities in Rajasthan,. Madhya Pradesh and Maharashtra in the latest series of hikes announced by the oil marketing companies after the result announcement of the state assembly elections on May 2, after an 18-day pause in an upward price rally.

Among the other metro cities, in Kolkata, a litre of petrol and diesel are priced at ₹93.49 and ₹87.16 respectively. In Chennai, per litre petrol and diesel cost are ₹95.06 and ₹89.11 respectively.

Motor fuel prices have been increasing since early February this year at an unprecedented rate, right after the Union Budget was announced. The price hike rally was paused during the state assembly elections and reduced marginally as well. However, the latest array of price hikes have removed all the reduction announced during that phase.

With such a massive price hike for both motor fuels, demands for electric vehicles, CNG and Auto LPG have been increasing across the country. The price hike of petrol and diesel is not only impacting the motorists but people who don't own vehicles as well.

The high price of fuel is directly impacting the transportation and logistics sector that has been already bearing the brunt of the Coronavirus pandemic, lack of demand. Common people have been suffering because of the fuel price hikes, as it is resulting in price surge for the daily essential and consumables.

The retail price of both petrol and diesel is the result of several components that includes excise duty by the central government, freight charges, VAT by local government, dealer commission etc. While some of the state governments have announced a marginal reduction in their respective VAT rates, the central government is adamant about not reducing the excise duty on fuels, which has been resulting in such an incessant price hike for petrol and diesel.