Petrol price crosses Rs 85 in Mumbai, no relief in sight
24 May 2018
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The retail price of petrol touched Rs85.29 a litre in Mumbai today as oil PSUs extended price revisions for the eleventh straight day after a 19-day break for the Karnataka polls till 14 May.
While the government promised some relief soon, the spike in petrol and diesel prices continued. Calls for a reduction in excise duty to ease the burden on consumers seem to have no effect and there is no relief in sight the near future.
In Mumbai, petrol price touched a new high of Rs85.29 per litre and diesel climbed hit its highest ever level of Rs72.96 amidst the relentless rise in international oil prices.
This is the eleventh straight day of price increase since oil PSUs since 14 May. In all, petrol price has been raised by Rs2.81 a litre and diesel by Rs2.76 in Mumbai in 11 days since 14 may.
Petrol in Delhi now costs Rs77.47 a litre, in Kolkata Rs80.12 and in Chennai Rs80.42 per litre while diesel in Delhi costs Rs68.53 alitre, in Kolkata Rs71.08 and in Chennai Rs72.35 per litre.
The government also does not want to lose revenue and is hoping for geopolitical tensions to ease and US shale oil production to rise in order to ease oil prices.
Also, the government does not want to tinker with the autonomy given to oil PSUs to revise rates daily in line with the cost.
The central government levies Rs19.48 a litre in excise duty on petrol and Rs15.33 per litre on diesel. State sales tax or VAT vary from state to state. In Delhi, VAT on petrol is Rs15.84 and Rs 9.68 a litre on diesel.
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