On Tuesday, the state-run OMCs have hiked fuel prices as international crude oil prices consolidated further. Both the price for diesel and petrol have hiked for two consecutive days. OMCs have hiked petrol price by 26 paise and diesel by 23 paise.
After the price rise, petrol costs Rs 94.49 per liter in Delhi and diesel is retailing at Rs 85.38. If we talk about the petrol price in Mumbai, it is an inch ahead of Rs 100 per liter while diesel costs Rs 92.69 per litre.
|City||Petrol (per litre)||Diesel (per litre)|
Experts say that a regular hike in the price of petrol and diesel directly affects the prices of other commodities which includes deliveries, food items, and transportation.
Though high taxation on fuel is a good source of revenue for the State as well as the Centre government, rising prices could derail economic recovery momentum as demand for other commodities will drop as a result.
India levies the highest tax on fuel in the world. For a litre of petrol, 60 percent of the price comprises taxes and 54 percent for diesel.