Petrol zooms past Rs 90 a litre, diesel also hits a new high at Rs 79

Prices of petrol in Mumbai today crossed the Rs 90 mark (Rs 90.17/litre), which is the highest retail price of the fuel in the history of the country. Even diesel has set a new record with its retail value set at Rs 78.67/litre. The government has continued to lay the blame on global concerns such as rising dollar value and the drop in production due to sanctions against Iran.

Oil traders across the globe are already expecting the crude oil prices to breach the $100 mark again after November 2014 with OPEC members refusing any immediate hike in production output and no respite to the US sanctions on Iran.

Considering the average exchange rate (Rs/$) of Rs 72.31 the price buildup of petrol indicates that the government-induced tax still comprises of 49 percent of the retail price.

Petrol prices have risen from Rs 80/litre to Rs 90/litre in just eight months while diesel has continued its upward rally since July this year. 

Considering the average exchange rate (Rs/$) of Rs 72.31 the price buildup of petrol indicates that the government induced tax still comprises of 49 percent of the retail price. According to an official government release, the domestic crude oil production during August 2018 was 2,908.12 TMT (thousand metric tonnes) which is 6.47 percent lower than target and 3.70 percent lower when compared with August 2017.

Crude Oil Production (in TMT)

Note: Totals may not tally due to rounding off.                                       *: Provisional

Also read: Petrol and diesel prices scale new high, government cites falling value of rupee