Fuel Prices Continue To Rise: Check Latest Rates Of Petrol, Diesel

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Fuel prices in the country hit a new benchmark on Sunday after oil marketing companies (OMCs) increased the rates of petrol and diesel once again. Petrol is available in Mumbai today at a price of Rs 89.29 per litre. In Delhi and Chennai too, petrol prices have climbed record highs of Rs 81.91 and Rs 85.15 per litre respectively. Petrol is retailing at a price of Rs 83.76 per litre in Kolkata today, according to a price notification of state-owned fuel retailers. 

In tandem with the rise in petrol prices, diesel prices also scaled to fresh highs. In Delhi, Mumbai, Chennai and Kolkata, diesel prices are at record levels of Rs. 73.72, Rs. 78.26 and Rs. 77.94, Rs. 75.57 per litre respectively. Fuel rates were also raised on Saturday. 

Prices of petrol and diesel vary from one city to another because of differences in local sales tax or VAT (Value Added Tax) and transportation cost. The recent surge in transportation fuel prices is largely attributed to high crude oil prices and a falling rupee. A weak rupee against the dollar makes the import of crude oil expensive.

Almost half of the retail selling price of petrol and diesel is made up of central and state taxes. Retail fuel rates are arrived at after adding excise duty charged by the Central government, and VAT – charged by the state governments – and the commission paid to petrol pump dealers. Dealer’s commission on petrol currently is Rs. 3.34 per litre and that on diesel is Rs.2.52. The Centre currently levies a total of Rs 19.48 per litre of excise duty on petrol and Rs 15.33 per litre on diesel. On top of this, states levy Value Added Tax (VAT).

According to a Reuters report, country’s fuel demand rose 0.8 per cent in August compared with the same month last year. Consumption of fuel, a proxy for oil demand, totalled 16.60 million tonnes, data from thePetroleum Planning and Analysis Cell (PPAC) of the oil ministry showed.

Globally, oil prices pulled back on Friday on concerns additional US tariffs would be placed on Chinese imports, after an earlier rally triggered by worries that more sanctions on Iran might constrict supply. (With agencies inputs)

Source: NDTV Profit