On account of state taxes petrol and diesel are the costliest in Mumbai and cheapest in Delhi among metro cities
04 September, 2018, 17:25
In Delhi, the petrol price has been risen to a record ₹79. At the Interbank Foreign Exchange, the local currency opened at a record low of 71.24 against a dollar, down from its previous close of 71.21, and weakened further to trade at a fresh low of 71.37, down 16 paise. Brent crude oil is now priced over $78 per barrel.
Thanks to that intervention, the price a litre of 95-octane petrol will go up on Wednesday from R15.44 to R15.49 at the coast and from R16.03 to R16.08 in Gauteng.
The prices of petrol and diesel touched a new high on Tuesday with Mumbai paying the maximum among the four metros.
The rupee, which lost 10 paise against the United States dollar in late afternoon trade on Monday, ended at a new record low of 71.10.
The surge in fuel prices is largely attributed to the rise in crude oil prices and high rate of excise duty in the country. Addressing a press conference, the Andhra Pradesh chief minister said that in addition to petrol prices, the rupee value would also touch Rs 100 against one U.S. dollar.
With imports becoming costlier because of a free fall in the rupee against the United States dollar, the government believes the current account deficit will overshoot the target and it can not "disturb fiscal maths by cutting excise duty on petrol and diesel", according to the official quoted above. "If taxes are cut, prices will decline significantly", Chidambaram said on Twitter.
Petrol prices have hit an all-time high in Mumbai.
Since August 16, petrol prices have risen by over Rs 2 per litre. In October 2017, the excise duty on petrol was reduced by Rs 2 per litre, the first such reduction by the current BJP government.
The rise in fuel prices was blamed on "external factors" by the Union Petroleum and Natural Gas Minister Dharmendra Pradhan, who said the hike was temporary. "I would like to mention two points, and both these subjects are external. Secondly, global currencies have weakened against the United States dollar".
"The Centre blaming the states is a spurious argument". And, the rupee will also touch the century mark.
"Dear Modiji, please show some kindness on a festival day.Your jumlas are not taxed, but when will you reduce the tax on petrol-diesel?"
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