Petrol Rate Touches 83 Rupees In Delhi, Diesel Price Hiked: 5 Things To Know

Petrol, diesel prices climbed to new peaks on Thursday as oil marketing companies (OMCs) raised the fuel rates across four metro cities. In Delhi, petrol rate touched Rs 83 per litre while diesel price reached Rs 74.24 per litre on Thursday. In Mumbai, petrol was sold at Rs 90.35 per litre. A litre of petrol was purchased at a price of Rs. 86.28 in Chennai and Rs 84.82 in Kolkata, according to a price notification of state-owned fuel retailers The revised price of diesel in Mumbai stood at Rs. 78.82 per litre. Diesel was being sold at Rs 78.49 per litre in Chennai and Rs. 76.09 per litre in Kolkata.

1. Petrol, diesel rates vary from city to city and from pump to pump depending on local taxes and transportation cost.

2. Delhi has the cheapest fuel rates among all metros and most state capitals because of lower taxes. Mumbai has the highest sales tax or value added tax (VAT). 

3. The continuous rise in transportation fuel prices has been in tandem with the increase in crude oil prices. Globally, oil prices rose by 1 per cent on Thursday, pushed up by the prospect of tighter markets due to US sanctions against major crude exporter Iran, which are set to be implemented in November. At its 2018 peak, Iran exported around 3 million barrels per day (bpd) of crude oil, equivalent to 3 per cent of global consumption.

4. Depreciation in the Indian rupee against the US dollar also makes the import of crude oil expensive as transaction is done in dollars. However, the Indian rupee on Thursday advanced by 22 paise to 72.38 against the US dollar in early trade.

5.The government on Wednesday raised import duties on 19 items, including jet fuel and air conditioners, as it looks to check the widening current account deficit resulting from high crude oil prices and the rupee dipping to a historic low. (With agencies inputs)