Petrol price at Rs 81 mark, diesel crosses Rs 73 in Delhi on falling rupee

Petrol price Thursday touched the Rs 81 per litre mark in Delhi while diesel rates crossed Rs 73 as the potent combination of a depreciating rupee and rising crude oil rates continued to push fuel prices higher.

After a day's lull, the upward march of fuel prices resumed Thursday with petrol price being hiked by 13 paise per litre and diesel by 11 paise, according to a price notification of state-owned oil marketing companies.

Petrol price in Delhi climbed to Rs 81 per litre while diesel inched up to an all-time high of Rs 73.08.

Delhi has the cheapest fuel rates among all metros and most state capitals because of lower taxes. Mumbai has the highest sales tax or VAT.

In Mumbai, a litre of petrol now costs Rs 88.39 and diesel is priced at Rs 77.58 per litre.

Mumbai has the highest rate of VAT or sales tax in the country.

According to oil companies, refinery gate price of petrol, without considering any central or state tax and dealer's commission, is Rs 40.49 per litre. The same for diesel is Rs 44.32.

Retail rates are 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.

Dealer's commission on petrol currently is Rs 3.34 per litre and that on diesel is Rs 2.52.

While crude oil rates flirted with the $80 per barrel mark, the rupee has plunged against the dollar. The combination of the two makes imports costlier.

Domestic retail prices are benchmarked to international rates of the fuel.

Since mid-August, petrol price has risen by Rs 3.92 a litre and diesel by Rs 4.31.


Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel