This story is from June 8, 2021

100th hike in price of fuels in Mumbai since lockdowns began

The metropolis on Monday experienced its 100th incremental hike in fuel prices since April 2020 when the first lockdown began, sources in the oil industry said. Petrol in Mumbai is now inching closer to Rs 102 while diesel is nearing Rs 94, both the highest rates recorded ever.
100th hike in price of fuels in Mumbai since lockdowns began
The metropolis on Monday experienced its 100th incremental hike in fuel prices since April 2020
MUMBAI: The metropolis on Monday experienced its 100th incremental hike in fuel prices since April 2020 when the first lockdown began, sources in the oil industry said. Petrol in Mumbai is now inching closer to Rs 102 while diesel is nearing Rs 94, both the highest rates recorded ever.
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The maximum hikes over the last 14 months came in June 2020 when prices went up 19 times, sources said.
Despite sales dipping as demand weakened during lockdowns, prices have stayed high on the back of repeated hikes in central excise and state’s value added tax (VAT). Nearly 70% of the retail price comprises taxes. With global crude prices climbing in the same period due to cuts in production by oil-producing nations, the central government has blamed international trends for the domestic surge.
Motorists and transporters of essential and non-essential goods have borne the brunt. Cost per km for a petrol driven car has gone up 31.5% in a year, from around Rs 4.75 to over Rs 6.25. "You are now paying Rs 25 more for a litre of petrol now then in May last year. So for a full tank, you are paying Rs 875 more this June than what you paid last year," said a Petrol Dealers Association member.
Price of petrol in Mumbai was hiked on Monday to Rs 101.57 while diesel rose to a new all-time high of Rs 93.64 a litre. Prices in Thane and Navi Mumbai were Rs 101.66 and Rs 93.72 for petrol and diesel respectively. Parbhani is where it is costliest in Maharashtra at Rs 103.88 while diesel has peaked in Amravati at Rs 95.10. Across the state, all pumps sell petrol at over Rs 100 and diesel over Rs 90.
Transporters say the cascading inflationary impact on essentials cannot be understated. Ravi Shinde of the Petrol Dealers Association said: “The ever increasing burden of working capital without increase in dealer margin for the last four years has literally broken our back. Any hike in petrol or diesel does not benefit pump owners significantly.” In Maharashtra, VAT and surcharge on petrol rose Rs 11.20 per litre between August 2014 and now. Central excise duty rose by Rs 24.32 per litre between 2014 and 2021. Maharashtra earns over Rs 25,000 crore annually from VAT on fuel.
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About the Author
Somit Sen

Somit Sen, Senior Editor at The Times of India, Mumbai. He covers stories on Power beat in Maharashtra and on Oil & Gas. He also covers RTO, BEST (Mumbai’s public transport buses), transport ministry, Maharashtra State Road Transport Corporation, interstate transport (trucks/tempos) and the fleetcabs.

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