New Delhi: Indian Financial Capital Mumbai is set to produce in one or two days of doubtful differences into the first metropolitan city to see the century diesel century, because the high state tax strengthens increased crude oil impacts.
Diesel prices reached Rs 99.92 per liter on Friday in Mumbai after the latest revised round by retailers since September 24.
Go with a price revision trend by retailer, the price is expected to reach RS 100-mark in a day or so.
Mumbai has been on May 29 to become the country’s first Metro to see gasoline reached a century because the tax was wasted the most among the ‘big four’.
While Rs 100 Liter prices have become normal for gasoline since February, Diesel reached RS 100-Mark on October 1 in several cities in Rajasthan, Madhya Pradesh, Odisha, and Andhra Pradesh – all countries with VAT.
The price reached Rs 106.03 per liter at Rajasthan’s Srianganganagar on Friday, the highest in this country.
High diesel prices will cut inflation because they are mainly consumed by the transportation, agriculture and construction sectors, which have cascading effects.
Politically, the price of a record diesel can add to farmers’ anger, which is nervous to the Central Agriculture Act, ahead of the crucial assembly poll.
The fuel price continued the record breaking after a 67-day gap since July 17 because the retailer began to increase the price of the pump after crude oil tested a three-year high of $ 80 per barrel last month.
While high crude oil prices are factors, the real reason why consumers pay through their nose is a sharp increase in last year in excise duties and VAT in countries, which strengthened the impact for consumers.
The center raised customs in the amount of Rs 13 on gasoline and RS 16 on Diesel between March and May last year when oil prices collapsed due to a pandemic.
Two increases to raise customs 65% in gasoline from Rs 19.98 to Rs 32.98 per liter and 79% on diesel from Rs 15.83 to RS 28.35.
VAT is collected as a percentage and rises every time a basic cost rises.
Sharp tax increases encourage central tax collection from gasoline and diesel in 2020-21 barbed 88% to more than RS 3 Lakh Crore – a record led by a leap 108% in the mop-up of diesel – even though sales are lower due to pandemic.