Petrol at Rs 86.25 in Mumbai, highest ever for any metro city

MUMBAI: The price of petrol in Mumbai touched Rs 86.25 a litre on Sunday morning. This is not only a new high for the city—the last recorded all-time high was Rs 86.24 on May 29—but also the steepest in any of the other major metro cities.
Diesel, too, touched a new high of Rs 75.12 a litre here, leaving transporters and motorists fuming. Sources said fuel prices will further rise to Rs 86.56 and Rs 75.54 on Monday.

Uday Lodh of the Federation of All-Maharashtra Petrol Dealers’ Association said, “Sources in oil marketing companies said there are indications that petrol and diesel prices will continue to rise depending on fluctuations in international crude oil prices and other factors such as the falling rate of rupee vis-a-vis the dollar.The government must waive excise duty, and reduce other taxes and fuel cess.”

The price hikes will pinch motorists, already frustrated with low mileage and extra fuel consumption due to road congestion, and vehicle speeds dropping to 10kmph on express highways during peak hours. Transporters, burdened with diesel price hikes for a fortnight, have threatened to agitate if there is no control or reduction in rates.

Transporters have threatened to increase freight rates by 10-15% if there is a further hike in diesel price.
Transporters warn of stir
More than 65% of operational costs of transportation is that of diesel. “We will hold the government responsible for any hike in prices of essential commodities like vegetables and fruits. This is because for every hike in diesel rates, we will pass the burden to consumers,” said Bal Malkit Singh of All-India Motor Transport Congress.
The highest rate of petrol in the state on Sunday was Rs87.90 in Nanded. Petrol prices, which have increased by more than Rs 5 in seven months, are also burning a hole in the pockets of those driving to work. With arterial roads chock-a-block during peak hours, motorists struggle to touch even 12kmph—with low speeds, petrol cars give low mileage-—because of which monthly spending on fuel is rising. Those who drive daily to workplaces 25-30km away have to spend more than Rs 300 extra per month one-way on petrol, compared to January. “We have to wait in jams, which leads to huge fuel wastage. An increase in fuel prices pinches the pockets of motorists and those plying heavy goods vehicles,” said a transport expert.
The VAT component in Maharashtra is high, which makes petrol and diesel costlier. Transporters want the government to bring fuel under GST besides a quarterly review of prices. There has been no change in excise duties too, they said.