In this pandemic situation the price of petrol and diesel raised again. Among major metros, Mumbai has the highest fuel rates. While petrol is sold at ₹98.88 per litre ( which is nearly ₹100.00) in the financial capital of India on Sunday, diesel is sold at ₹90.40 a litre. Even as fuel rates in Delhi are taken as the benchmark for the entire country, retail prices of these two fuels differ from place to place because of variations in state freight charges, local taxes, VAT and other local levies. Bharat Petroleum Corporation Ltd (BPCL), Indian Oil Corporation Ltd (IOCL) and Hindustan Petroleum Corporation Ltd (HPCL) revise the fuel prices on a daily basis in line with benchmark international price and foreign exchange rates.
This was the sixth increase in prices since May 4. There are two key reasons for higher petrol and diesel rates – taxes on auto fuels and a spike in international oil prices. In India fuel prices differ from state to state depending on the incidence on the local taxes such as VAT and freight charges. Petrol and Diesel prices are controlled by the market forces and these prices are linked with global crude prices. India is largely dependent on the import and thus the price of the fuel is not based on crude oil prices. When the global fuel prices go up, the burden is passed on to the consumer.