There seems to be no respite for the common man from soaring fuel rates, as petrol prices crossed Rs 90-mark in Mumbai for the first time ever. Petrol prices were hiked by 11 paise in Mumbai to Rs 90.08. In national capital Delhi, one litre of petrol was seen retailing at Rs 82.72. In Chennai, petrol price is 1 paisa shy from the 86-mark, at Rs 85.99. In Kolkata, one litre of petrol is being sold for Rs 84.54, a hike of 10 paise from previous prices.
Notably, in October last year, when petrol price in Mumbai had hit Rs 79.99 per litre, the government announced a Rs 2 per litre excise duty cut just in time, which led to roll-back of the price before it could hit Rs 80. This time, the psychological mark is Rs 90 a litre. The petrol price in Mumbai on Saturday was Rs 89.80 a litre, just 20 paise short of hitting Rs 90.
The fuel prices are highest in Mumbai due to high Value Added Tax (VAT) imposed by Maharashtra. PTI reported recently that the state is mulling increase in excise duty on Indian-made foreign liquor (IMFL) to create fiscal space for providing some relief on fuel tax. Fuel and liquor have been kept outside the ambit of the Goods and Services Tax (GST).
Meanwhile global oil prices rose on Monday as U.S. markets tightened just weeks ahead of Washington’s plan to impose new sanctions against Iran, with U.S. bank J.P. Morgan warning of price spikes above $90 per barrel in coming months. Brent crude futures were at $79.71 per barrel at 0138 GMT, up by 91 cents, or 1.2 percent, Reuters reported.