Motorists brace for another fuel price increase

Fuel prices and the rand

One litre of diesel cost Rs 77.31, up eight paise from Sunday.

The hike in petrol, diesel prices was for the 11th consecutive day today.

The petrol price increase expected to rock the pumps in November will effectively mean that motorists are paying R4 more per litre compared to the beginning of the year.

The Congress on Monday hit out at Prime Minister Narendra Modi for doing "electoral drama" ahead of elections in five states over rising prices of petrol and diesel and said that the government has fleeced the common people through "draconian taxation" of Rs 13 lakh crore. The news agency ANI reported, "Petrol and diesel prices in #Delhi are Rs 82.83 per litre (increase by Rs 0.11) and Rs 75.69 per litre (increase by Rs 0.23), respectively".

After the Centre cut excise duty by Rs 1.50 and asked the PSU oil firms to subsidise fuel by ₹1, Maharashtra and Gujarat were among the first to announce a matching ₹2.50 cut.

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Petrol on October 4 was priced at ₹84. In March, a litre of unleaded 95 petrol cost R13.76.

While in Delhi diesel rates are at their highest ever, in most the other states it is lower than the peak as some state governments matched the central government's move to lower excise duty and oil company subsidy by a similar cut in local sales tax or value added tax. Chhattisgarh, Jharkhand, Tripura, Uttar Pradesh, Madhya Pradesh, Himachal Pradesh, Haryana Assam, Uttarakhand, Goa, Arunachal Pradesh and Bihar followed suit.

The AA's Layton Beard says, "It's early days in October. we're only halfway through the month and as we know the price of petrol is adjusted once a month, so by the end of October the picture may look completely different".

Diesel in Mumbai costs Rs 79.11 per litre, down from Rs 80.10 on October 4.

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