Mumbai has the highest sales tax or VAT. Petrol price in Mumbai crossed the landmark level of Rs 90 per litre on Monday. As per several Oil Marketing Companies (OMCs), the refinery gate price of petrol without levying and central or state tax or dealer’s commission is Rs 42.04 Rs 45.34 for diesel.
Following a pause on Wednesday, petrol and diesel prices kept on reaching new heights this week. In order to ease the situation five north Indian states including union territory of Chandigarh have agreed to come up with uniform fuel rates and has also formed a sub-committee for the same. The West Bengal government, last week, reduced the excise duty on petrol and diesel by Re 1 per litre each.
Following the same, even Karnataka government announced to cut cess on fuel prices and thus petrol and diesel prices across the state went cheaper by Rs 2 per litre each.
According to India’s fuel pricing structure, petrol and diesel rates depend upon the international fuel prices on a 15-day average and also the value of Indian rupee against US dollars. The continuous depreciation of India rupee has been touted as one big reason behind the soaring fuel prices. Rates of petrol and diesel vary from city to city and from a pump to pump depending on local taxes and transportation cost.