#FuelsOnFire: Petrol price at record high, breaches Rs. 91/liter mark
Petrol price today crossed the Rs. 91-mark in Mumbai while domestic cooking gas, LPG rates breached Rs. 500-level for the first time ever as oil, at a four-year high, pushed fuel prices to new all-time high across the country.
Petrol prices were hiked by 24 paise per liter and diesel by 30 paise, according to price notification of state-owned oil firms.
Petrol costs Rs. 91.08/liter in Mumbai, Rs. 83.73 in Delhi
In Mumbai, petrol now costs Rs. 91.08/liter at Indian Oil Corporation (IOC) outlets, Rs. 91.15 at Bharat Petroleum Corporation Ltd (BPCL) pumps, and Rs. 91.15 at Hindustan Petroleum Corp Ltd (HPCL) stations.
Meanwhile, diesel in Mumbai costs Rs. 79.72/liter at IOC outlets and Rs. 79.79 at BPCL outlets.
The hike pushed petrol price in Delhi to Rs. 83.73/liter and diesel to Rs. 75.09.
Brent crude oil climbed to $83.27
India is the third largest importer of crude oil.
Brent, the benchmark for more than half the world's oil, rose to highest since November 2014 today ahead of US sanctions against Iran kicking in next month.
Brent crude oil climbed to $83.27, up from $71 five weeks back, while the rupee lost ground against the dollar by 5-6%, resulting in expensive crude imports.
Love Business news?
Stay updated with the latest happenings.
Yes, notify Me
Petrol price has risen by Rs. 6.59/liter since mid-August
Since mid-August, the petrol price has risen by Rs. 6.59/liter and diesel by Rs. 6.37, the most in any six weeks after the daily price revision was introduced in mid-June last year.
Also today, domestic cooking gas (LPG) rates were hiked by Rs. 2.89 per 14.2kg cylinder to Rs. 502.40 on account of higher GST applicable on base price, according to oil companies.
Government subsidizes 12 cylinders of 14.2 kg each per household
This is the fifth straight monthly increase in subsidized LPG rates. It was priced at Rs. 491.21 in May.
All consumers have to buy cooking gas LPG at market price. The government, however, subsidizes 12 cylinders of 14.2kg each per household in a year by providing the subsidy amount directly in bank accounts of users.
This subsidy amount varies from month to month.
Price of non-subsidized LPG cylinder stands at Rs. 879
When international rates increase, the government provides a higher subsidy. As per tax rules, GST on LPG has to be calculated at fuel's market rate.
The government may subsidize a part of price but tax will have to be paid at market rates. This has led to price hikes.
The price of non-subsidized LPG in Delhi was hiked by Rs. 59.00/cylinder to Rs. 879.
Delhi has cheapest fuel rates, Mumbai has highest
According to IOC, the subsidy transfer in customers' bank account has been increased to Rs. 376.60/cylinder in October as against Rs. 320.49/cylinder in September. Delhi has the cheapest fuel rates among all metros because of lower taxes. Meanwhile, Mumbai has the highest sales tax.