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Petrol prices at new high, retails at Rs 84/lt in Mumbai

Petrol prices have touched new high on Sunday while diespel prices have also been hiked by 31 paise.

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Petrol prices have touched new high on Sunday while diespel prices have also been hiked by 31 paise. According to Indian Oil Corporation, petrol was retailing at Rs 84 per litre in Mumbai while it was at Rs 76.24 in New Delhi. Similarly, diesel rate hiked by Rs 67.57 in New Delhi and Rs 70.12 in Kolkata, Rs 71.94 in Mumbai, Rs 71.32 in Chennai and Rs 68.73 in Bengaluru.  

On Sunday, the price of the petrol was highest ever in Mumbai. India has the highest retail prices of petrol and diesel among South Asian nations as taxes account for half of the pump rates. 

Finance Minister Arun Jaitley had raised excise duty nine times between November 2014 and January 2016 to shore up finances as global oil prices fell, but then cut the tax just once in October last year by Rs 2 a litre.

Subsequent to that excise duty reduction, the Centre had asked states to also lower VAT, but just four of them - Maharashtra, Gujarat, Madhya Pradesh and Himachal Pradesh - reduced rates while others including BJP-ruled ones ignored the call.

The central government had cut excise duty by Rs 2 per litre in October 2017, when petrol price reached Rs 70.88 per litre in Delhi and diesel Rs. 59.14. Because of the reduction in excise duty, diesel prices had on October 4, 2017, come down to Rs 56.89 per litre and petrol to Rs 68.38 per litre.

However, a global rally in crude prices pushed domestic fuel prices far higher than those levels.

The October 2017 excise duty cut cost the government Rs 26,000 crore in annual revenue and about Rs 13,000 crore during the remaining part of the current fiscal year.

Meanwhile, during the 19-day hiatus over Karnataka polls, analysts estimate the three OMCs - Indian Oil Corp, Bharat Petroleum Corp Ltd and Hindustan Petroleum Corp Ltd - took a combined hit of over Rs 1,500-1,700 crore since the start of April, when the prices marginally higher despite a steep rise in international oil prices. The revisions were altogether stopped on April 25 due to polls in key southern state.

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