Mumbai, Jaipur And Pune Petrol Prices Cross Rs 100 Per Litre

The gap between petrol and diesel prices is also shrinking

Petrol prices have started crossing the Rs 100 per litre mark in several cities. Mumbai is the latest city to cross that mark, making the country-wide rising fuel prices an alarming issue.

While Jaipur, Pune and Mumbai are the most affected, prices in most other Indian cities are also hovering between Rs 90 and Rs 100, and are likely to touch the century mark soon.

Petrol prices have grown by nearly 25 percent, or between Rs 22 to Rs 24 per litre, in the last year alone.

To illustrate this with a real-world example, let’s evaluate the fuel costs of a Maruti Wagon R with a 1.2-litre petrol engine. Filling up the fuel tank now costs you around Rs 1,200 more, compared to 2020. The per-kilometre running cost has also increased. As the fuel tank capacity increases, the gap further widens.

The government has stated rising crude oil prices as the prime reason for the relentless fuel price hike. Besides, even the VAT and excise duties are increasing alarmingly.

(Example Prices In Delhi On 16th May)

As you can see, the total retail price is nearly three times the base price. This is due to the increasing taxes and excise duties applied on petroleum by the government, basically to boost its revenues and support the economy.

Dharmendra Pradhan, Minister For Petroleum And Natural Gas, earlier this year stated the reduction in international fuel production as one of the prime reasons for the rising crude oil prices. While production is reducing, demand is increasing everyday, which in turn is leaving a reduced quantity of crude oil barrels in the market.

Diesel prices have also started touching new records, and the difference between it and petrol continues to reduce.

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Manufacturers are now starting to turn their heads to the EV and CNG markets. CNG prices are just around Rs 50 per kilogram, making them almost 50 percent cheaper. But currently, only Maruti Suzuki and Hyundai offer CNG cars.