Oil Marketing Companies (OMCs) hiked the prices of petrol and diesel in four metro cities on Sunday. Petrol can be purchased at a price of Rs. 77.40 per litre in Delhi, Rs. 84.82 per litre in Mumbai, Rs. 80.34 per litre in Kolkata and Rs. 80.40 per litre in Chennai. Petrol prices were increased while diesel prices were kept unchanged on Saturday. Petrol prices in Delhi are the cheapest due to lower sales tax or VAT (Value Added Tax). Delhi charges a VAT of 27 per cent on petrol. Mumbai has the highest VAT of 39.12 per cent on petrol.
Diesel can be bought today at Rs. 68.92 per litre in Delhi. Diesel is priced at Rs. 73.17 per litre in Mumbai, Rs. 71.76 per litre in Kolkata and Rs. 72.80 per litre in Chennai. Diesel prices in Delhi are the cheapest due to lower sales tax or VAT. Delhi charges a VAT of 17.24 per cent on diesel.
State-run oil companies in mid-June last year dumped 15-year practice of revising rates on 1st and 16th of every month in favour of daily price revisions. Indian Oil, Bharat Petroleum and Hindustan Petroleum have been revising fuel prices with effect from 6 am on a daily basis, since then.
According to government officials, the crude oil import bill is likely to jump by about $26 billion in 2018-19 as rupee dropping to a record low has made buying of oil from overseas costlier.