Moneycontrol News
Petrol and diesel prices increased 23 paise and 31 paise, respectively, in Mumbai on October 9. With this hike, a litre of petrol now costs Rs 87.73 and diesel Rs 77.68 in the financial capital, according to Indian Oil Corporation (IOC).
Despite reducing value-added tax (VAT) by Rs 2.50 per litre, the financial capital is still the costliest for petrol. Delhi, which is yet to reduce VAT, is still the cheapest of all the metros and bulk of state capitals as it levies lower taxes.
A litre of petrol and diesel in Delhi retails for Rs 82.26 and Rs 74.11 per litre after the respective hike of 23 paise and 29 paise.
In Kolkata, petrol and diesel prices rose 22 paise and 29 paise to Rs 84.09 and Rs 75.96 per litre, respectively.
Chennai witnessed a slightly higher increase in petrol prices across all the four metros. Petrol price increased 24 paise to Rs 85.50 per litre, while diesel now retails at Rs 78.35 per litre, up 31 paise.
| City | Petrol price | Price change | Diesel price | Price change |
| (Rs/litre) | Rise/(fall) in | (Rs/litre) | Rise/(fall) in | |
| paise/litre | paise/litre | |||
| Bangaluru | 82.91 | 23 | 74.49 | 29 |
| Bhopal | 85.46 | 23 | 75.51 | 29 |
| Hyderabad | 87.21 | 25 | 80.61 | 31 |
| Lucknow | 79.68 | 22 | 72.12 | 28 |
| Port Blair | 70.78 | 20 | 69.32 | 26 |
Motor fuel prices are rising across the country because of higher global crude oil prices and a weaker Indian rupee.
To rein in motor fuel prices, the Centre had on October 4 announced an Rs 2.5 per litre cut in petrol and diesel prices. Of which, Rs 1.5 per litre is on account of reduction in excise duty and the balance would be absorbed by oil marketing companies.
The cut is estimated to reduce the combined operating margins of three oil marketing companies -- IOC, Hindustan Petroleum Corporation and Bharat Petroleum Corporation -- by Rs 6,500 crore during the current fiscal, rating agency Moody's said on October 8. These three OMCs account for about 95 percent of the country's retail fuel sales.
Meanwhile, Road Transport Minister Nitin Gadkari stressed on the use of alternative sources of energy including bio ethanol amid rise in petroleum prices. "Import of petrol is becoming difficult for the country and so we should look at the alternative sources of energy ...we should make full use of biofuel, methanol, and ethanol among others," he stated.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
