Spike in fuel price continues, Petrol price goes up 30 paise, Diesel rises 40 paise

Petrol prices in Delhi breached Rs 79 a litre on Monday, continuing a rising streak in prices across metros. At Rs 79.15 a litre in the national capital, the price of petrol hit a fresh record high on Monday, more than 31 paise over Sunday’s price of Rs 78.84.

Under the dynamic pricing system for transport fuels, the Indian Oil Corporation (IOC) revises fuel prices based on global crude oil prices every day at 6 am.

In Mumbai, Kolkata and Chennai, petrol prices went up by in the range of 30-32 paise a litre, with the fuel selling for Rs 82.06 per litre in Kolkata, Rs 86.56 in Mumbai, and Rs 82.24 in Chennai, according to data provided by IOC.

The increase in prices for diesel, on the other hand, was sharper, with the fuel selling for Rs 71.15 a litre in Delhi on Monday, 39 paise higher than Sunday’s price of Rs 70.76 per litre on Sunday. In Kolkata too, petrol was expensive by 30 paise, at Rs 74 a litre.

In Mumbai and Chennai, however, diesel prices went up by 42 paise a litre on Monday, with the fuel priced at Rs 75.54 in Mumbai, and Rs 75.19 in Chennai.

The renewed spike in fuel prices came alongside the devaluation of the rupee against the US dollar, and rising global crude oil prices.

A break-down of fuel pricing in Delhi, according to the IOC chart below, shows that at the exchange rate of Rs 69.76 against the US dollar, as on August 27, the levies on petrol, including excise duty imposed by the centre, state value-added tax (VAT) and dealer commissions accounted for more than the cost of the fuel itself, or about 51% of the price that a buyer pays for a litre of petrol.

The rupee was trading at Rs 70.83 against the US dollar in opening trade on Monday.