Petrol Prices Hiked By Up To 10 Paise Across Metro Cities
Petrol and diesel prices were further raised on Sunday by up to 17 paise across the four metro cities. A litre of petrol was sold in New Delhi for Rs 83.49, in Kolkata for Rs 85.30, in Mumbai for Rs 90.84, and in Chennai for Rs 86.80, Indian Oil Corporation (IOC) data showed. A litre of diesel was sold in New Delhi for Rs 74.79, in Kolkata for Rs 76.64, in Mumbai for Rs 79.40, and Chennai for Rs Rs 79.08, showed data on the website of IOC, the largest fuel retailer.
These fuel prices came into effect from 6 am on Sunday.
(States ley value added tax (VAT) on petrol and diesel rates.)
On Saturday, petrol was sold at the rate of Rs 83.40/ litre in New Delhi, Rs 85.21/ litre in Kolkata, Rs 90.75/ litre in Mumbai and Rs 86.70/ litre in Chennai. Diesel was sold at the rate of Rs 74.63/ litre in New Delhi, Rs 76.48/ litre in Kolkata, Rs 79.23/ litre in Mumbai and Rs 78.91/ litre in Chennai. The magnitude of the hike in petrol prices was between 9-10 paise and that in diesel rates was to the tune of 16-17 paise.
States ley value added tax (VAT) on petrol and diesel rates. Delhi has the cheapest fuel rates among all metros and most state capitals because of lower taxes. Mumbai levies the highest VAT. Retail rates are arrived at after adding excise duty, which is charged by the Central government, commission paid to petrol pumps dealers and VAT, charged by the state governments.
Petrol and diesel prices are decided on a daily basis according to global crude oil prices and the rate of the rupee against the US dollar.
Global crude oil prices have surpassed their November 2014 highs ahead of a new round of US sanctions on Iran, the third-largest producer among OPEC (Organization of the Petroleum Exporting Countries) member countries. The US sanctions are supposed to kick in from November 4. Global crude oil benchmark Brent was last up 60 cents at $82.32 a barrel on Friday, according to a report by news agency Reuters.
As India imports 80 per cent of its crude oil requirements, petrol and diesel prices have been soaring.
The rupee has been hitting multiple lows but closed 11 paise higher against the US dollar at 72.48 on Friday. It ended the month over 2 per cent lower against the greenback.
The rise in petrol and diesel rates is likely to affect inflation, which was until August below the central bank's medium term target of 4 per cent. August retail inflation rose 3.69 per cent from a year earlier, down from July's 4.17 per cent. The Reserve Bank of India's monetary policy review is scheduled to be released on Friday. (With agencies inputs)