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Fuel Price Hike: Fuel prices continue to rise, petrol price hiked by 14 paise per litre, diesel by 15 paise

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Fuel prices continued to rise Tuesday, as petrol price was hiked by 14 paise per litre and diesel by 15 per litre in Mumbai. The increase pushed the petrol price in Mumbai to a record high Rs 88.26 per litre. Diesel rate touched its highest level of Rs 77.47 a litre. After the hike, the petrol in Delhi will now cost Rs 80.87 per litre (increase by Rs 0.14/litre) and diesel will cost Rs 72.97 a litre (increase by Rs 0.14/litre).

Since mid-August, petrol price has risen by Rs 3.65 a litre and diesel by Rs 4.06 per litre as the rupee hit the record low against the US dollar, making imports costlier. Almost half of the retail selling price of the two fuels is made up of central and state taxes. According to oil companies, petrol at refinery gate costs around Rs 40.50 a litre and diesel Rs 43 per litre.

The Centre currently levies a total excise duty of Rs 19.48 per litre of petrol and Rs 15.33 per litre on diesel. On top of this, states levy Value Added Tax (VAT) — the lowest being in Andaman and Nicobar Islands where 6 per cent sales tax is charged on both the fuels. Mumbai has the highest VAT of 39.12 per cent on petrol, while Telangana levies the highest VAT of 26 per cent on diesel. Delhi charges a VAT of 27 per cent on petrol and 17.24 per cent on diesel.

(Inputs from Agencies)