Petrol prices cross Rs 80-mark in Mumbai, Diesel at Rs 68.30

New Delhi: Petrol prices on Monday hit the highest level since the BJP government came to power in 2014.

Petrol prices were hiked by 15 paise and diesel prices were hiked by 7 paise per litre, applicable from 6:00 a.m. on 5th February 2018.

In Mumbai, prices have crossed Rs 80-mark - costliest in the country.

Diesel is being sold at Rs 68.30 in Mumbai, where the local sales tax or VAT rates are higher while petrol is being sold at Rs 81.17.

Petrol price rose to Rs 73.31 per litre in Delhi, highest since March 2014, while diesel price rose to Rs 64.14 per litre in Delhi.

Petrol price has risen by almost 4 per litre since mid- December, while diesel jumped Rs 5.77 a litre.

Finance Minister Arun Jaitley has rejiged excise duty on petrol and diesel but kept the total tax incidence unchanged, belying expectations of a cut in rates to cushion rising prices.

In his Budget proposals for 2018-19, Jaitley lowered basic excise duty on petrol and diesel by Rs 2 per litre each to Rs 4.48 and Rs 6.33 a litre, respectively.

He also abolished Rs 6 per litre additional duty of excise on both the transport fuel. But to make up for the two, he slapped a new Rs 8 per litre 'Levy of Road and Infrastructure Cess' on both petrol and diesel, thereby keeping the total incidence at the same level.

Asked about the cut in excise duty and imposition of road cess in the Budget, analysts said it was the global crude oil prices which were driving petrol and diesel rates.

Global oil prices on Monday extended declines from the end of last week amid a wider market sell off and a stronger dollar, with Brent crude falling to its lowest in nearly a month.

Other markets dropped as investors were spooked by Friday`s payrolls report from the United States, which showed wages growing at their fastest pace in more than 8-1/2 years, fuelling inflation expectations.

Brent was down 68 cents, or 1 percent, at $67.91 a barrel at 0344 GMT, after falling 1.5 percent on Friday. Brent`s weekly drop was 2.75 percent last week.

With Agency Inputs