Oil Marketing Companies (OMCs) in India have raised petrol prices by 28-29 paise/litre and diesel prices by 26-28 paise/litre on May 31. Since May 3, fuel prices have cumulatively jumped by Rs 3.83/litre for petrol and Rs 4.42/litre for diesel after a series of consecutive price hikes over the month.
Petrol is now priced at Rs 94.23/litre in Delhi, while diesel costs Rs 85.15/litre in the national capital.
In Mumbai, petrol continued to cost more than Rs 100/litre at Rs 100.47/litre, while diesel is now at Rs 92.25/litre. Petrol price in the country’s financial capital breached the Rs 100/litre milestone on May 29 after a Rs 0.25/litre hike.
Fuel prices vary across states depending on local taxation like value-added tax (VAT). Rajasthan levies the highest value-added tax (VAT) on petrol in the country, followed by Madhya Pradesh and Maharashtra.
Central and state taxes make up for 60 percent of the retail selling price of petrol and over 54 percent of diesel.
The state-run OMCs – Indian Oil Corporation, Bharat Petroleum and Hindustan Petroleum – decide the rates of domestic fuel against global crude oil prices by taking into account changes in foreign exchange rates.