Following Rajasthan, petrol price reaches Rs 100 in MP, Govt explains reason

After Rajasthan, petrol price on Thursday crossed the Rs 100 per litre mark in Madhya Pradesh after fuel rates were increased for the tenth day in a row.
Petrol price was hiked by 34 paise per litre and diesel by 32 paise, according to a price notification of state-owned fuel retailers.

While branded or additive-laced petrol, which attracts higher taxes, had crossed the Rs 100-mark in some places in states like Maharashtra, Madhya Pradesh and Rajasthan, regular petrol crossed the physiological mark in Sriganganagar town of Rajasthan on Wednesday, and on Thursday it went past that mark in Madhya Pradesh.

In Anuppur of Madhya Pradesh, petrol is priced at Rs 100.25 per litre and diesel at Rs 90.35.
Fuel prices differ from state to state depending on the incidence of local taxes such as VAT and freight charges. Rajasthan levies the highest value-added tax (VAT) on petrol in the country, followed by Madhya Pradesh.

Madhya Pradesh levies 33 per cent plus Rs 4.5 a litre and 1 per cent cess on petrol. On diesel, it charges 23 per cent plus Rs 3 per litre and 1 per cent cess. After Thursday’s price increase, petrol in Delhi costs Rs 89.88 per litre and diesel Rs 80.27.

In Mumbai, petrol price rose to Rs 96.32 a litre and diesel was priced at Rs 87.32. Oil Minister Dharmendra Pradhan had on Wednesday blamed output cut by oil-producing nations for the rally in international oil prices that have translated into higher retail rates in India. He urged Saudi Arabia and other global oil producers to ease production cuts, saying rising international oil prices are hurting economic recovery and demand.

Demand recovery should take “primacy” over oil prices at least for the next few months, he had said.