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Petrol Price Touches Rs.88.67, Diesel Price Hikes

Fuel prices today: Prices of petrol and diesel vary from one city to another because of differences in local sales tax and transportation cost.

Petrol & diesel prices, in the country continued their upward movement on Friday with rates hitting fresh highs as oil marketing companies (OMCs) increased fuel cost across metro cities.

In Delhi, petrol price touched Rs. 81.28 per litre, up from Rs. 81 on Thursday, according to a price notification of state-owned fuel retailers.

A litre of petrol is retailing today at a price of Rs. 88.67 per litre, with a rise of Rs. 0.28 per litre in Mumbai. A litre of petrol can be purchased today at Rs. 84.49 in Chennai and Rs. 83.14 in Kolkata.

In tandem with the rise in petrol prices, diesel prices also climbed to fresh highs. In Delhi, Mumbai, Chennai and Kolkata, diesel prices are at record levels of Rs. 73.30, Rs. 77.82 and Rs. 77.49, Rs. 75.15 per litre respectively.

On Thursday, fuel prices were raised in three metro cities, except Kolkata, where fuel prices fell after the West Bengal government cut excise duty.

Prices of petrol and diesel vary from one city to another because of differences in local sales tax or VAT (Value Added Tax) and transportation cost.

Delhi has the cheapest fuel rates among all metros and most state capitals because of lower taxes. Mumbai has the highest sales tax or VAT.

Except for halts on September 5 and September 12, fuel prices have been increased almost daily across India over the past few weeks, owing to higher crude oil prices coupled with a depreciating rupee.

Any fall in the Indian rupee against the US dollar makes the import of crude oil expensive as the transaction is done in dollars, reported .

However, the Indian rupee strengthened by 50 paise to 71.68 against the US dollar in early trade in the forex market today.

Retail fuel rates are arrived at after adding excise duty, which is charged by the Central government, commission paid to petrol pumps dealers and VAT, charged by the state governments. Dealer’s commission on petrol currently is Rs. 3.34 per litre and that on diesel is Rs. 2.52.

Meanwhile, Rajasthan government announced a 4 per cent cut in the state VAT on petrol and diesel on Sunday to reduce their prices by Rs. 2.5 per litre in the state, while Andhra Pradesh government announced a reduction of tax on petrol and diesel by Rs. 2 per litre.

Globally, oil prices on Friday clawed back some of its losses from the previous session when prices fell the most in a month, although worries that emerging market crises and trade disputes could dent demand continued to drag.

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