Petrol, Diesel Prices Rise To New Highs; VAT Raised In Goa

On Friday, fuel prices rose to new all-time highs in various major cities of India for the second straight day after a 30 paise hike.

The latest hike by oil marketing companies (OMCs) in India has raised petrol prices per litre to Rs 86.95 in New Delhi, Rs 88.30 in Kolkata, Rs 93.49 in Mumbai and Rs 89.39 in Chennai.

Meanwhile, diesel prices per litre rose to Rs 77.13 in New Delhi, Rs 80.71 in Kolkata, Rs 83.99 in Mumbai and Rs 82.33 in Chennai.

Meanwhile, in Goa, the state government announced an increase in the VAT (Value Added Tax) on petrol and diesel on Thursday. VAT was raised from 25% to 27% on petrol and on diesel it has been hiked from 22% to 23%.

As a result, the petrol price in the state will rise by Rs 1.30 per litre and diesel by 60 paise.

Having held rates steady for 29 days, OMCs began raising auto fuel prices since early January.

These rates are revised on a daily basis at 6 am based on changes in the international crude oil prices. Oil prices have been on an upswing after the meeting of the Organization of the Petroleum Exporting Countries (OPEC) and its allies held on 3 February, wherein it was decided to continue with output curbs. The group's decision is significant for India as production from the cartel makes up for about 40% of global output and 83% of India's oil imports.