New Delhi: Fuel prices continued to skyrocket on Friday after petrol prices were increased by Rs 0.28 per litre and was priced at Rs 81.28 per litre in the national capital. Similarly, diesel prices saw an increase by 0.22 per litre and are being sold at Rs 73.30 per litre in Delhi. Meanwhile, in Mumbai, petrol prices touched yet another high as petrol was priced at Rs 88.67 per litre (an increase of Rs 0.28 per litre) while diesel was priced at Rs 77.82 per litre (an increase of Rs 0.24 per litre).
The revise in prices comes just a day after the hike was observed on Thursday with petrol being sold at Rs 81.00 per litre and diesel being sold at Rs 73.08 per litre in the national capital. On September 14, a litre of petrol was priced at Rs 88.39 per litre and diesel at Rs 77.58 per litre in Mumbai.
With more than a fortnight of consecutive hike in the fuel prices, the common man is reeling under the spiralling prices.
Reportedly, the Centre has no plans to reduce taxes on petrol and diesel prices in the near future as neither the Central government nor some states can afford to suffer revenue loss from such a move. As per Finance Ministry estimates, every Rs 2 cut in the prices of petrol and diesel would lead to a revenue loss of around Rs 30,000 crore. The government said that it would not take any knee-jerk action as a response to the fall in rupee or spike in fuel prices.
However, Rajasthan, Andhra Pradesh and West Bengal government have announced a reduction in fuel prices by Rs 2.5, 2 and Re 1 respectively.
The retail price of petrol and diesel is 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. Mumbai has the highest VAT of 39.12 per cent on petrol, while Telangana levies the highest VAT of 26 per cent on diesel. Delhi charges a VAT of 27 per cent on petrol and 17.24 per cent on diesel. Since mid-August, the petrol price has risen by Rs 3.92 a litre and diesel by Rs 4.31 per litre.