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Petrol prices are continuing to increase in major cities across India. Some major cities like Mumbai, Delhi and Bangalore are experiencing petrol prices retailing at over Rs 83 per litre.
However, among all the states, Maharashtra has the highest fuel costs. Many cities in the state are experiencing a record high cost of per litre fuel. With 12 cities in the state crossing the Rs 91 per litre fuel mark.
The main reason for the high cost in the state is due to the fact that, Maharashtra charges the highest VAT (Value Added Tax) at 39 per cent for both fuels. This includes a surcharge of Rs 9 and Re 1 on petrol and diesel, respectively.
The state charges 25 per cent VAT on petrol in Mumbai, Navi Mumbai and Thane, while charging 26 per cent Value-Added Tax in other parts of the state.
For diesel, the state charges 21 per cent VAT in the three major cities (Mumbai, Thane and Navi Mumbai) and 22 per cent in the remaining parts of the state.
Currently, petrol prices in Mumbai are Rs 89.54 per litre, while diesel prices in the city are retailing at Rs 78.42 per litre. This is an increase of Rs 2.50 and Rs 3.92 per litre of petrol and diesel, respectively since August 31st.
Meanwhile, other cities in Maharashtra have recorded even higher petrol prices. Many cities in Maharashtra have petrol prices currently retailing between Rs 90 and 91. Cities like Aurangabad, Nanded, Ratnagiri and Parbhani have recorded petrol prices retailing at around Rs 91 per litre.
The high cost in some of these cities, according to an Indian Oil spokesman is due to the additional transportation cost added to these areas. Prices of fuel in cities like Nanded reached Rs 91.75 per litre on Sunday and faced a further increase of Rs 0.44 on Monday (17th September 2018) to Rs 92.19.
Thoughts On The Increasing Petrol Prices In India
Petrol prices in India, have been increasing on a daily basis. The prices have now reached a record high in many cities of Maharashtra, crossing the Rs 91 barrier. This increase is mainly due to the dropping exchange rate between the Rupee to the US Dollar. On Monday, the rupee lost 67 paise to close at Rs 72.51 against the USD.
If the retail prices of fuel in India continue to increase at the given rate, most petrol stations in India will have to recalibrate their fuel pumps to show three-digit prices.