Petrol-Diesel / Mumbai becomes 1st metro city to see petrol price cross ₹100/L-mark

New Delhi: Petrol, diesel prices were hike again on Saturday which led to petrol rates crossing the Rs 100 mark in Mumbai. After today's price revision, while the price of diesel went up by 28 to 30 paise, petrol became 25 to 26 paise costlier. In National Capital Delhi, petrol was retailing at Rs 93.94 per litre while diesel was priced at Rs 84.89 per liter.

For the first time, the price of petrol in Mumbai has crossed 100 rupees. In the economic capital, petrol today was retailing at Rs 100.19 while was priced at Rs 92.17 per liter. Mumbai today became the first metropolis in the country to see regular petrol selling for Rs 100. Note that petrol price had already crossed Rs 100 in Sriganganagar in Rajasthan and Bhopal in Madhya Pradesh. 

Petrol and diesel rates remained unchanged on Friday. However, after Thursday's price increase, petrol shot past Rs 100-mark in Thane, the first time in Maharashtra. Jaipur became the second state capital after Bhopal where petrol price topped Rs 100.

Premium petrol prices have already crossed the Rs 100 per litre mark in the city and other parts of the country through increase in the retail rates in the month of January and February. Friday's pause in price revision came after OMCs raised fuel prices by 25-30 paise a litre kept on the previous day. The oil companies have been following this trend for the past couple of weeks when fuel prices are raised on few days and kept unchanged on others.

Fuel prices have now increased on 15 days so far in the month of May. The 15 increases in May have taken up petrol prices by Rs 3.53 per litre in Delhi. Similarly, diesel price has increased by Rs 4.18 per litre in the national capital.

Petrol, diesel price hike after assembly elections:

It is worth noting that for the last two months, the process of assembly election was going on in many states of the country. Therefore, even after crude oil being expensive last month, there was no increase in petrol-diesel price. After crude oil became cheaper, petrol and diesel prices were reduced in four installments. This made petrol cheaper by 77 paise per liter. After elections, petrol has become Rs 3.61 costlier in 16 days.

Fuel prices have started increasing again this month. After the elections, petrol has become costlier by 3.61 paise per liter in 16 days. During March-April, the price of diesel was cut for four days. Because of this, it became cheaper by 74 paise per liter. After elections, diesel has become expensive by Rs 4.11 per liter in 16 days.

Fuel price revision:

Bharat Petroleum Corporation Ltd (BPCL), Indian Oil Corporation Ltd (IOCL) and Hindustan Petroleum Corporation Ltd (HPCL) revise the fuel prices every morning benchmarking retail fuel prices to a 15-day rolling average of global refined products' prices and dollar exchange rate. 

Remember that fuel prices differ from state to state depending on the incidence of local taxes such as VAT and freight charges. Central and state taxes make up for 60% of the retail selling price of petrol and over 54% of diesel. The union government levies Rs 32.90 per litre of excise duty on petrol and Rs 31.80 on diesel. Rajasthan levies the highest value-added tax (VAT) on petrol in the country, followed by Madhya Pradesh.