Petrol Price Crosses Rs 96/L In Mumbai; Meghalaya Slashes Rates By Rs 7

Fuel prices in India hit another new all-time high after oil marketing companies hiked rates for the ninth consecutive day amid high international oil prices.

Petrol prices per litre were up by 25 paise to Rs 89.54 in New Delhi, Rs 90.78 in Kolkata, Rs 96 in Mumbai and Rs 91.68 in Chennai.

Diesel prices per litre also rose approximately 25 paise to Rs 79.95 in New Delhi, Rs 83.54 in Kolkata, Rs 86.98 in Mumbai and Rs 85.01 in Chennai.

Meanwhile, international oil prices fell in early trade on Wednesday as the US dollar climbed, retreating after a two-day rally that was driven by an Arctic blast curbing output from oil and gas fields in Texas, the country's biggest oil-producing state.

The global benchmark for oil prices, Brent crude futures, was down 0.6% to $62.95 a barrel, rising to the highest since January 2020.

Fuel rates in India are revised on a daily basis based on changes in international oil prices as well as rupee's exchange rate. However, the difference in prices across states is due to local, state and central government taxes on petrol and diesel. After rates skyrocketed to new highs, Assam announced a Rs 5 per litre cut in state tax. Following suit was Meghalaya state government that reduced prices of petrol and diesel by approximately Rs 7 per litre on Wednesday.

Pointing out that prices of petrol and diesel reached Rs 91.26 and Rs 84.23 per litre, respectively, in the state, the Chief Minister Conrad Sangma said, "Keeping this aspect in mind and the fact that consumers are being affected and despite the fact that the state is facing financial issues and the VAT that we have collected from petrol and diesel has helped the state in difficult times of COVID-19, the government has decided that we will be reducing the VAT for petrol and diesel".