Petrol price on Monday crossed the ₹91-mark in Mumbai while domestic cooking gas LPG rates breached the ₹500-level for the first time ever as oil at four-year high pushed fuel prices to new all-time high across the country.
Petrol prices were hiked by 24 paise per litre and diesel by 30 paise, according to price notification of State-owned oil firms.
The hike pushed petrol price in Delhi to an all-time high of ₹83.73 per litre and diesel to ₹75.09.
In Mumbai, petrol now costs ₹91.08 at Indian Oil Corp. (IOC) outlets, ₹91.15 at Bharat Petroleum Corp. Ltd. (BPCL) pumps and ₹91.15 at Hindustan Petroleum Corp. Ltd. (HPCL) stations.
Diesel in Mumbai costs ₹79.72 per litre at IOC outlets and ₹79.79 at BPCL outlets.
India is the third largest importer of crude oil and rising international oil prices are inflating domestic transport fuel costs in a strong demand environment. Brent, the benchmark for more than half the world’s oil, rose to the highest since November 2014 on Monday ahead of U.S. sanctions against Iran kicking in next month. Brent crude oil climbed to $83.27, up from $71 five weeks back, while the rupee lost ground against the dollar by 5-6% during the same period, resulting in expensive crude imports.
Since mid-August, the petrol price has risen by ₹6.59 a litre and diesel by ₹6.37 — the most in any six weeks after the daily price revision was introduced in mid-June last year.
Also on Monday, domestic cooking gas (LPG) rates were hiked by ₹2.89 per 14.2-kg cylinder to ₹502.40 on account of higher GST applicable on base price, according to oil companies.
This is the fifth straight monthly increase in subsidised LPG rates. It was priced at ₹491.21 in May.
All consumers have to buy cooking gas LPG at market price. The government, however, subsidizes 12 cylinders of 14.2-kg each per households in a year by providing the subsidy amount directly in bank accounts of users.
This subsidy amount varies from month to month, depending on the changes in the average international benchmark LPG rate and foreign exchange rate.
When international rates move up, the government provides a higher subsidy. But as per tax rules, GST on LPG has to be calculated at the market rate of the fuel. The government may choose to subsidise a part of the price but tax will have to be paid at market rates.
This has led to increase in price.
The price of non-subsidised or market priced LPG in Delhi was hiked by ₹59.00 per cylinder to ₹879 mainly due to change in international price and foreign exchange fluctuations.
According to IOC, the subsidy transfer in customers’ bank account has been increased to ₹376.60 per cylinder in October as against ₹320.49 per cylinder in the previous month.
Delhi has the cheapest fuel rates among all metros and most state capitals because of lower taxes. Mumbai has the highest sales tax or VAT.
Published - October 01, 2018 01:36 pm IST
