Fuel Price Hike: Petrol at INR 91.32 and Diesel is at INR 78.94 in Parbhani
Residents of Parbhani district in Maharashtra are facing the wrath of increased fuel prices, with petrol now costing INR 91.32 per liter and diesel is at INR 78.94 per litre. The odd combination of USD-INR exchange rate and crude oil barrel price had made this case the worst ever in last few years. The Delhi price for petrol is INR 82.16 while diesel retails for INR 73.87 in the national capital. Mumbai, on the other hand, faces a much harsh situation with INR 89.54 and INR 78.42 for petrol and diesel prices respectively.
Most Indian states levy a different amount of VAT and thus, prices vary so much among all states. The excise duty on petrol is a central government levied value, similar in all states and currently at a very high rate. The government once increased the excise duty to cover a sudden roll down in pricing of the fuel and after that, they never reduced the value to help buyers lower down their budget on fuel. Petrol and diesel carry two different prices as both types of fuel are differently taxed in all states. The states that use diesel as the primary fuel for agriculture and industry offer lower tax rates.
Others, where the primary use of diesel is for transportation, do not offer such reduction in tax values. The closest example for this is Punjab and Chandigarh, with petrol retailing at INR 88.22 and INR 79.10 per liter respectively. On the other hand, diesel pricing for both the states are much closer at INR 74.25 and INR 71.82 respectively. The numbers are much smaller than the diesel price seen in Mumbai, where no such tax reduction by the state is applicable. The situation is getting worse with each passing day.