Fuel prices continue to rise, nears Rs 83 a litre in Delhi

Fuel price hike Rs 2 slash in petrol diesel prices effective in Karnataka from September 18 Mumbai petrol price nears Rs 90 per litre

The reduction in petrol and diesel prices by Karnataka comes after Andhra Pradesh, West Bengal and Rajasthan cut fuel prices by Rs 2, Rs 1 and Rs 2.5 per litre respectively.

Among metros, a litre of petrol on Monday was sold for Rs 82.06 in Delhi, Rs 83.91 in Kolkata, Rs 89.44 in Mumbai, Rs 85.31 in Chennai and Rs 84.74 in Bengaluru.

Fuel prices in the country have been rising nearly daily since August 1.

As per rates released daily by state-run Indian Oil Corp, the depreciating rupee and expensive crude oil further pushed petrol and diesel to new record highs on Monday.

Karnataka breathed a sigh of relief as the state's Congress-JD (S) government, led by Chief Minister HD Kumaraswamy, yesterday announced a Rs 2 per litre cut in petrol and diesel prices effective from Tuesday. They fell only once on August 13 and have been on record levels for over two weeks now.

Fuel prices have been on a rise since mid-August, rising nearly every day due to depreciation in the dollar-rupee and higher global crude oil prices.

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Sector experts say a weak rupee and high excise duty are major factors for the rise in fuel prices.

In global markets, Brent crude oil futures dipped 16 cents, or 0.2 per cent to $77.93 a barrel by 6:05 am.

Maharashtra has the highest fuel cost among all the states as it charges the highest Value-Added Tax on the petrol and diesel at a little over 39 per cent, including the ₹ 9 surcharge on petrol and Re 1 on diesel.

Since the start of the calendar year, the petrol price in Delhi has gone up by over 15 per cent from Rs 69.97 on January 1, 2018.

Since the beginning of September, petrol has become costlier by more than Rs 3 per litre. Petrol and diesel in the state are presently taxed at a little over 39 percent, which includes a 26 percent VAT and a surcharge of Rs 9 and Re 1 on petrol and diesel, respectively. But there is no clarity whether the spike in fuel prices was discussed.

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