Petrol, Diesel Prices hiked again

New Delhi: Even after observing Bharat bandh against fuel prices hike, Petrol and diesel prices set fresh highs as fuel rates were increased further on Tuesday.

In Maharashtra's Parbhani, petrol prices breached the psychological barrier of Rs. 90 and touched a scorching Rs. 90.11 - a new record in India, an official was quoted as saying in a report by news agency Indo-Asian News Service.

Meanwhile, in New Delhi, a litre of petrol was being sold for Rs. 80.87, in Kolkata for Rs. 83.75, in Mumbai for Rs. 88.26, and in Chennai for Rs. 84.07, according to the largest fuel retailer, Indian Oil Corporation (IOC). Diesel was being sold at the rate of Rs. 72.97/ liter in New Delhi, Rs. 75.82/ liter in Kolkata, Rs. 77.47/ liter in Mumbai, and Rs. 77.15/ liter in Chennai.

On Monday, Andhra Pradesh government announced a reduction of tax on petrol and diesel by Rs. 2 a liter.

On Sunday, poll-bound Rajasthan slashed the tax on petrol and diesel. Chief Minister Vasundhara Raje announced a 4 percent reduction which brought the prices of the two commodities down by Rs. 2.5 per liter in the state.

The Centre currently levies a total excise duty of Rs. 19.48 per liter of petrol and Rs. 15.33 per liter on diesel. On top of this, states levy Value Added Tax (VAT) the lowest being in Andaman and Nicobar Islands where 6 percent sales tax is charged on both the fuels.

Petrol and diesel rates are revised on a daily basis by oil-marketing companies, after considering global crude oil rates and the movement of the rupee against the US dollar. The rupee has been plunging to hit fresh lows almost every day this month and has sunk 11.6 percent so far against the dollar this year.