Maharashtra 3rd state to feel the pinch as petrol hits Rs 100

NEW DELHI: The price of regular petrol on Monday crossed Rs 100 per litre in Parbhani district of Maharashtra, making it the third state after Rajasthan and Madhya Pradesh where the fuel's cost has hit a century.
The fifth revision in pump prices since May 4 also brought Bhopal in Madhya Pradesh close to earning the dubious distinction of becoming the first state capital to see petrol at Rs 100, with the fuel selling for Rs 99.55 a litre.
Sri Ganganagar in Rajasthan has the highest petrol price at Rs 102.42 a litre followed by Anuppur in Madhya Pradesh with Rs 102.12. Petrol price had risen to Rs 100 for the first time in the country on February 17 in Sri Ganganagar. Prices vary in states according to VAT rates. Rates vary in cities within a state because of freight, which depends on the distance from the supply point, or cess. Rajasthan taxes fuels the most, while Maharashtra and Madhya Pradesh are among the high-tax states.
In the four metros, petrol sold well above Rs 90, with consumers in Mumbai paying the highest at Rs 97.86 a litre and the lowest in Delhi at Rs 91.53. Diesel prices too were above Rs 80, hovering near Rs 90 in Mumbai.
TOI had on February 24 said that Rs 100 may be the new normal in states with high taxes and cess as state-run fuel retailers, who control 90% of the market, kept raising prices in tune with the rally in global crude since January. As petrol prices topped Rs 100 in many cities ahead of elections in five states, calls grew louder for cutting excise duty. The duty was raised by Rs 13 on petrol and Rs 16 on diesel between March and May 2020, when oil prices had collapsed. But the government shifted the blame by charging the OPEC+ grouping with backtracking on its promise and rigging oil prices by capping production.
But the state-run retailers, who control 90% of the market, stopped the daily price revisions from February 28 till March 23, though India’s crude cost topped $68 per barrel in between. As electioneering gathered pace, a sprinkling of symbolic price reductions marked long pauses prompted by informal government directive even though crude continued its rally.
Now that the poll dust has settled, consumers are back to square one as retailers resumed the daily revisions since May 4 -- two days after the election results were out -- and the high central and state taxes make the increases pinch harder. Taxes account for 60% of the retail price of petrol and 54% of diesel. The centre charges Rs 32.90 as excise duty on a litre of petrol and Rs 31.80 on diesel. VAT differs in states and compounds the cost further for consumers.