Petrol and diesel prices at all-time high; check fuel rates in India on October 1

Petrol prices increased by 25 paise in the national capital, while diesel prices increased by 30 paise on October 1. Petrol and diesel prices reached all-time highs after being raised for the second day in a row across the country. Following the latest price hike, petrol price today in Delhi is now at a record high of Rs 101.89 per litre, while diesel price today has now broken through the Rs 90 barrier for the first time, selling for Rs 90.17. Petrol costs Rs 107.95 in Mumbai's financial hub, while diesel costs Rs 97.84, according to data on the Indian Oil Corporation's website. Previously, on July 17, 2021, fuel prices in Delhi had reached new highs of Rs 101.84 per litre and Rs 89.87 for diesel. Petrol had risen to Rs 107.83 in Mumbai, while diesel had increased to Rs 97.45.

The cost of auto fuel varies from state to state, based on local taxes (VAT) and freight expenses. Apart from that, motor fuels are subject to an excise levy imposed by the federal government. The cost of petrol or diesel is affected by several national and international factors. On the national level, state government taxes and federal government taxes account for the majority of the price tag for the ultimate retail price of gasoline or diesel. There are also the charges levied by state-owned oil firms to consider. On the international front, worldwide crude oil market sentiments and the dollar-to-rupee exchange rate are now major determinants of ultimate prices.

Fuel prices in India

Petrol prices:

Delhi: Rs. 101.89
Mumbai: Rs. 107.95
Chennai: Rs. 99.58    
Kolkata: Rs. 102.47

Diesel prices:

Delhi: Rs. 90.17
Mumbai: Rs 97.84
Chennai: Rs. 94.74
Kolkata: Rs. 93.27

Rising fuel prices alarming for the economy

Crude oil prices have risen sharply in recent weeks, forcing state-run oil companies to raise petrol and diesel prices. For the past two days, crude oil prices have been decreasing. The scenario is concerning for India, as it is one of the world's largest oil importers, and rising crude oil prices would result in a steep increase in petroleum products. Experts have expressed alarm about rising fuel prices, which has prompted numerous businesses to boost their product pricing. This is because increasing fuel prices directly impact the cost of materials used to manufacture or deliver a product.

The fact that fuel costs are rising during the crucial third quarter when demand is high might severely slow the rate of economic recovery. The federal and state governments have stated unequivocally that fuel taxes will not be reduced despite the concerns. It must be outlined that India has one of the world's highest fuel taxes. If fuel prices continue to climb, inflation will rise sharply, affecting consumer demand, one of the most significant drivers of economic growth.

Image: PTI/Representative Image