As per sources, the fuel prices have increased by around Rs 5 per litre in the past 7 months. Oil Marketing Companies (OMCs) on Sunday hiked petrol and diesel prices by 16 paise and 31 paise respectively. In Chennai, petrol costs Rs 82.24 while it is Rs 82.06 in Kolkata.
Fuel prices continued to rise on Monday, with petrol and diesel prices touching a new record high in several metropolitan cities, including Delhi and Mumbai. On September 1, 2018, Delhi woke up to the revised petrol and diesel prices, which were hiked by Rs 0.16 per litre and 0.34 per litre respectively. "Where are we heading to?"
Internal factors: These include rising prices in crude oil, transport costs, and taxes and levies.
The price of Brent crude oil went up to $78.05 per barrel on Tuesday from $77.37 per barrel on Monday.
The retail price of LPG will also remain unchanged.
CNG will now cost Rs 42.60 per kg in Delhi and Rs 49.30 per kg in Noida, Greater Noida and Ghaziabad. The consumer price of PNG to the households in Delhi has been increased to ₹28.25 per scm, while same in Noida, Greater Noida and Ghaziabad would be ₹30.10 per scm, which has been increased by ₹1.26 per scm. The surge in fuel prices can be largely attributed to the spike in global crude prices. If the current trend continues, both petrol and diesel prices will have a double digit price growth in the current fiscal year. While Mumbai has the highest VAT (Value Added Tax) of 39.12 per cent on petrol. Delhi charges a VAT of 27 per cent on petrol and 17.24 per cent on diesel.
According to South African Petroleum Industry Association, the petrol retail price is regulated by the government. With deregulation of diesel prices in 2014, no such option exists anymore.
The petrol pump price is made up of a number of price elements and these can be divided into global and domestic elements. In fact, diesel prices have grown at a faster rate than petrol prices in the last three years.
Without a reduction in petroleum taxes, which can complicate an already strained fiscal situation, inflationary pressures from rising oil prices will be hard to douse, he added.