Fuel prices skyrocket in Mumbai, Delhi; Petrol touches all-time high at Rs 91.56 per litre

Fuel prices in Mumbai skyrocketed on Monday as it touched an all-time high with petrol being sold at Rs 91.56 per litre. The ratchet was witnessed as state-owned oil companies revised the rates after remaining unchanged for the last three days, marking an increase of 25 paise per litre. Apart from petrol, the price of diesel also touched an all-time high as it reached Rs 81.87 per litre in the financial capital of the country. 

The previous record was witnessed in October 2018, when petrol price touched Rs 91.56 per litre in Mumbai. The government had responded to the situation in October 2018 by cutting excise duty on petrol and diesel by Rs 1.50 per litre in a bid to ease inflationary pressure and boost consumer confidence. Alongside, state-owned fuel retailers cut prices by another Re 1 a litre, which they recouped later. The difference between petrol and diesel prices in Mumbai now stands at Rs 9.69.

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Fuel prices touch new high in Delhi

Similarly, in Delhi, fuel prices reached a new high as petrol recorded a selling price of Rs 84.95 per litre whereas diesel was sold at Rs 75.13 per litre. State-owned fuel retailers - Indian Oil Corporation Ltd (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) - had on January 6 resumed daily price revisions after nearly a month-long hiatus.

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Petrol and diesel rates are generally revised on a daily basis depending upon the benchmark international price and foreign exchange rates. However, government-controlled fuel retailers have been moderating rates since the outbreak of the COVID-19 pandemic. 

At present, excise duty totals at Rs 32.98 per litre in petrol and Rs 31.83 in diesel. Value Added Tax (VAT) in Delhi totals to Rs 19.32 a litre on petrol and Rs 10.85 on diesel. With international oil prices rebounding from the lows witnessed in April last year, retail rates in India too were revised. Since May 2020, petrol price has witnessed a rise by Rs 15.29 per litre and diesel by Rs 12.84, price notifications of oil companies showed. 

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