Fuel prices continued to rise across the country on October 4. The price of petrol in Mumbai increased by 0.14 paise to Rs 91.34 per litre, while that of diesel rose by 0.21 paise to Rs 80.10 per litre.
In Delhi, prices of petrol and diesel were hiked by 0.15 paise and 0.20 paise, respectively. Petrol now costs Rs 84 per litre, while diesel is priced at Rs 75.45 per litre, according to the Indian Oil Corporation (IOC).
Petrol is being sold at Rs 87.18 in Chennai while diesel at Rs 79.57 while in Kolkata a litre of petrol costs Rs 85.65 while diesel Rs 77.1.
Petroleum Minister Dharmendra Pradhan recently blamed global factors for the increase in prices of petroleum products. He said reducing taxes on these items would not have any lasting impact because crude oil prices were still quite volatile.
"The basic problem is that crude prices are volatile. The effect of any measures, including a reduction in the value-added tax (VAT) by the states and the excise duty by the Centre will not last long due to the volatility in crude prices," Pradhan said.
However, the minister also said that higher fuel prices are a matter of concern and that the government is finding ways to offer some relief to the public.
The Centre currently levies an excise duty of Rs 19.48 per litre on petrol and Rs 15.33 per litre on diesel.
In addition to this, various states levy VAT at different rates. Mumbai has the highest VAT — 39.12 per cent — on petrol, while Telangana levies the highest VAT — 26 per cent — on diesel.