Explained: Petrol prices near Rs 100 mark in Mumbai; why fuel rates are rising and will they continue to spike?
New Delhi | Jagran Business Desk: Petrol and diesel prices on Thursday were increased by 24 paise and 29 paise per litre respectively, according to a price notification of state-owned fuel retailers. In Maharastra's Thane district, petrol now comes for Rs 100.06 a litre and diesel for Rs 91.99 per litre as a result. In neighbouring Mumbai, petrol price increased to Rs 99.94 per litre and diesel rates reached Rs 91.87.
This is the 14th hike in this month in the prices of petrol and diesel which has recorded high levels across the country. The rates had already crossed the Rs 100 mark in several cities like Madhya Pradesh, Rajasthan, and Maharashtra. Now, with the latest increase, even Mumbai's Thane has crossed the Rs 100 per litre mark.
Why are fuel prices rising in India?
There are various reasons which contribute to increasing the price of fuel in India. The excise tax levied by the central and state government is one of the reasons behind the hike in fuel prices. For example, the prices of fuel differ from state to state depending on the rate of local taxes such as Value Added Tax (VAT) and fright charges in the state. Rajasthan levies the highest VAT on petrol in the country making petrol and diesel prices costlier at Rs 104.67 and Rs 97.49 per litre respectively.
Besides, the fuel rate in the international market also determines the oil prices in India. This means when global fuel prices increases, Oil Marketing Companies (OMCs) hike prices in India.
Will fuel prices continue to rise in India?
Oil Marketing Companies revise rates of petrol and diesel daily based on the average benchmark fuel price in the international market as shown in the last 15 days and foreign exchange rates.
Since the global crude prices are rising again to a benchmark of around USD 69 a barrel, Oil Marketing Companies may continue to keep revising the prices of petrol and diesel for some more time.
Posted By: Sugandha Jha