New Delhi: Diesel prices reached a record two-month high of Rs 69.46 a litre, while petrol closed in on Rs 78 as the value of the rupee fell against the dollar.
The fall of the rupee has led to costlier imports. The fuel prices have, therefore, gone up despite a fall in global crude oil prices.
After the 14 paisa hike in diesel price, the price of the fuel is now at its highest ever in the country capital. It now costs Rs 73.74 in Mumbai.
The fall in rupee value since August 16 has pushed fuel prices upwards. The rupee hit a record low of 70.32 against the US dollar on that day. Diesel prices have increased by Rs 0.74 during this period.
The central govenment charges Rs 19.48 per litre excise duty on petrol and Rs 15.33 per litre on diesel. The states add VAT to it and this varies from state to state.
The excise duty was raised by the centre by Rs 11.77 a litre on petrol and 13.47 a litre on diesel in installments between November 2014 and January 2016. This was done as global oil prices had fallen that time. The excise duty was reduced by Rs 2 a litre just once in October 2017.
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