In Mumbai, Chennai and Kolkata, petrol per litre is Rs 87.39, Rs 83.13 and Rs 82.88. The school bus operators and other federations of the transport industry are also demanding bringing petrol and diesel under the ambit of Goods and Services Tax (GST). On Friday, the oil marketing companies increased the prices of petrol by 48 paise and that of diesel by 52 paise per litre in Delhi. Harsh Kotak, a leader of bus operators in Mumbai, said this was the first time the price has gone up 50 paise a day since June 2017, when the government began revising fuel prices every day. Finance Minister Arun Jaitley mentions that the global prices are volatile.
Opposition parties have announced nationwide strikes and protests next week over record-high fuel prices which they blame on high taxes. In Hyderabad, petrol costs Rs 84.81 and diesel Rs 78.39.
India imports about 80% of its crude oil, and the falling Indian rupee will make the imports costlier and lead to a rise in fuel prices. Former Finance Minister, P Chidambaram, while coming down heavily on the excessive tax rates on fuel prices said that if taxes are cut, prices will come down significantly.
Mumbai has the highest Value-Added Tax of 39.12 per cent on petrol, while Telangana levies the highest Value-Added Tax of 26 per cent on diesel. Similarly, petrol is being sold for ₹83.14 per litre in Chennai and the diesel retail price is ₹76.18 per litre.
Since mid-August, petrol price has risen by Rs 2.85 a litre and diesel by Rs 3.3 per litre as rupee hit record low against the United States dollar, making imports costlier.