Petrol price continues to climb to new and record-breaking levels and with the most-recent hike on Tuesday, a litre of the fuel in the city of Mumbai has moved woefully close to ₹105. Other major metropolitan cities like Delhi, Kolkata and Chennai may be paying less for petrol and diesel but only in comparison to Mumbai.
Price of a litre of petrol on Tuesday was hiked by around 34 to 35 paise, taking the rate in Mumbai to 104.90. A litre of diesel saw a hike of 28 to 30 paise, taking the rate to 96.72 here.
Petrol is also at an all-time high in Delhi and a litre of the fuel is at ₹98.81 whereas a litre of diesel is at ₹88.18. In Kolkata, a litre of petrol and diesel is being sold at ₹98.64 and ₹92.03, respectively. The rates in Chennai are at ₹99.80 and ₹93.72.
Petrol and diesel prices in major Indian cities today - June 29, 2021
Petrol and diesel prices have been increasing - almost daily - since May 4. Petrol rates went north of ₹100 for a litre in many states by the start of June. These states include Rajasthan, Maharashtra, Andhra Pradesh, Madhya Pradesh, Telangana, Odisha, Manipur, among others.
Shockingly, buying a litre of petrol in Mumbai now is more expensive proposition than a purchasing the same quantity of the automotive fuel in New York.
The central government has often blamed international crude rates and currency performance for how the daily revisions in fuel rates work out. More recently, Oil minister Dharmendra Pradhan had also said that the government needs to save funds for various welfare schemes. He had also attacked Congress for targeting the central government while Congress state governments not lowering taxes. The final fuel rate has a sizeable portion of taxes imposed by the central government as well as levies and VAT imposed by state governments. Revenue earned from petrol and diesel sales, therefore, become a very important part of revenue generation for both central as well as state governments.
But incessant hikes could hardly auger well for consumers. The rapid rise in rates, many agree, has hit the Indian middle class hard. Disposable incomes are getting eroded courtesy record fuel rates while inflationary pressures are on the rise. "Definitely, the high prices will have an impact on the growth and return to normalcy," Prashant Vasisht, Vice President at ICRA, was quoted as saying by Reuters. "Prices above a particular level do pinch and people travel less and try to save on the fuel cost."
For now, however, there is absolutely no sign of any climb back down in rates of fuel and it is likely to, in fact, keep up with its upward trend.