After this hike, Petrol is being retailed at Rs 81.68 per litre and Diesel is being retailed at 73.24 per litre in the National capital.
The government had on Thursday reduced the fuel prices by Rs 2.50 per litre, out of which the Centre has slashed Rs 1.50 in excise duty and the remaining Re 1 will be absorbed by the oil marketing companies.
Except for Mumbai, diesel prices are up by around 30 paise across the cities. Fuel rates saw a marginal increase after excise duty cut by Centre, VAT reduction by BJP-ruled states and Re 1 price cut by oil marketing companies coming into effect. This happened due to the Rs 1.56 relief on diesel prices announced by the state government on Friday.
Similarly, diesel rates are hiked by 29 paise a litre each on October 6 and Sunday. In Lucknow, every litre of petrol costs Rs 79.12, whereas the same amount of diesel is selling for Rs 71.28. In Chennai, petrol and diesel prices climbed to Rs 84.89 and Rs 77.42 respectively.
Several states had announced reduction in fuel prices by cutting sales tax/VAT. Diesel rates too had peaked to Rs 75.45 a litre in Delhi and Rs 80.10 in Mumbai.
Industry sources said for state-owned fuel retailers absorbing Re 1 per litre price would mean a Rs 9,000 crore hit on profits on an annualised basis. At the same time, the prices of crude oil in the worldwide market was $108 per barrel but the prices of the crude oil dropped to $77 per barrel at the start of November and further reduced to $36 in March, 2016.
Finance Minister Arun Jaitley urged states to match the cut with an equivalent reduction in the value-added tax.
The hike in duties in 2014-16 had led to excise collections from petro goods rising from Rs 99,184 crore in 2014-15 to Rs 2,29,019 crore in 2017-18.