The fuel prices in various states across India has seen record prices with petrol price shy of hitting the 100 Rs mark soon. Petrol price in Mumbai, as of now, stands at Rs 90.35 a litre. Diesel is not exempt from this ordeal, with prices lingering around the Rs 75 per litre mark in many states.
Delhi with Rs 82.72 has the lowest price for petrol from all other metro cities due to low taxes. The dip in the value of rupee against the dollar and rise in crude oil prices has fueled this unforeseen hike in fuel prices since mid-August, leading to the prices of petrol and diesel going up by over Rs 5 per litre in a short span of time.
The Petroleum minister Dharmendra Pradhan blamed global factors for the increase in prices of petroleum products. Pradhan said that reducing taxes on these items will not have any lasting impact due to the continuing volatility in crude prices. "The basic problem is that crude prices are volatile. The effect of any measures, including the reduction in the VAT by the states and the Excise duty by the Centre will not last long due to the volatility in crude prices," Dharmendra Pradhan said.
The Centre currently levies an excise duty of Rs 19.48/litre on petrol and Rs 15.33 per litre on diesel. Various states levy Value Added Tax (VAT) on petrol and diesel. Mumbai has the highest VAT of 39.12 per cent on petrol, while Telangana levies the highest VAT of 26 per cent. on diesel. The crude oil is currently priced around $76.68 per barrel.