The already skyrocketing fuel prices climbed up again on Friday by around 50 paise for both petrol and diesel. While petrol costs Rs 86.91 a litre, diesel is priced at Rs 75.96 a litre in Mumbai. In Mumbai, petrol is being sold at Rs 87.39 per litre, and diesel at Rs.76.51 per litre. Petrol price was hiked by 48 paisa per litre and diesel by 47 a litre, according to price notification issued by state fuel retailers.
Since mid-August, petrol price has risen by Rs 2.85 a litre and diesel by Rs 3.3 per litre as rupee hit record low against the USA dollar, making imports costlier. Mumbai has the highest Value-Added Tax of 39.12 per cent on petrol, while Telangana levies the highest Value-Added Tax of 26 per cent on diesel. In Hyderabad, petrol costs Rs 84.81 and diesel Rs 78.39.
The consistent hike in fuel prices has led the opposition parties to blame the Modi government for mismanagement. Despite record increase in oil prices, Finance minister Arun Jaitley remained non-committal on excise duty cut to cushion petrol and diesel prices.
State-owned oil firms had in June a year ago discarded the policy of changing fuel rates on the first and 16th of every month, and resorted to daily price revision instead.
He also did not comment anything on reducing the excise duty to counter the steep rise in the fuel prices.
Nearly half of the retail selling price of the two fuel is made up of central and state taxes. Diesel price rose from Rs 74.19 per litre to Rs 74.40. Taxes account for half of the price we pay for petrol and diesel and there's scope for relief.