Petrol, diesel prices soar to record highs in Mumbai; Know what you pay now

Fuel prices in India have soared to record highs over the last 8 days and the trend got worse after the Karnataka poll election outcome. The state-owned OMCs had kept in abeyance daily revision in petrol and diesel prices since April 24, and once the poll results were out, the rates of these products were raised to a great extent, especially in India’s financial hub Mumbai. This city has seen the biggest hikes compared to others, even after considering Maharashtra having trimmed Value Added Tax (VAT) in the state, which means the burden of hike should have been less in the city. 

In Mumbai, petrol price available at Rs 84.40 per litre and diesel at Rs 72.21 per litre. Both are ruling at record highs. 

From May 14 till date, petrol and diesel prices have increased by Rs 1.92 per litre and Rs 2.01 per litre in Mumbai. 

On June 16, 2017, when India turned to daily revision in fuel prices, petrol stood at Rs 76.70 per litre in Mumbai, and diesel was at Rs 59.90 per litre. 

But from that day till now, petrol has increased by Rs 7.7 per litre and diesel price by Rs 13.72 per litre in the city. 

So far, the current situation is this that, Brent crude oil has shoot up over $79 per barrel, and the Indian government has ruled out any relief by easing excise duty. Also, many states are reluctant in reduce the Value Added Tax and the rupee has been hovering near 68-mark against US benchmark dollar index.

OMCs cannot do anything about rising international crude oil prices. 

But in October 2017, the finance ministry had cut excise duty by Rs 2 per litre and even urged states to trim down VAT rates. 

The Maharashtra Cabinet followed the direction, and reduced VAT on petrol by Rs 2 per litre and diesel by Rs 1 per litre effective from midnight. 

Oil Minister Dharmendra Pradhan that time had mentioned that states must give further relief by reducing VAT by 5%.

Maharashtra levies 46.52% VAT (47.64% in Mumbai) on petrol, the highest in the country. Andhra Pradesh has 38.82% VAT on petrol while BJP- governed Madhya Pradesh levies 38.79% VAT on the fuel.

From the above, one could have expected relaxation in hike in Mumbai prices.