Chennai: Fuel prices scaled new heights in Tamilnadu today, with petrol now at Rs 90.18 per litre, and diesel at Rs 83.18 per litre in Chennai city.
In Cuddalore, petrol touched Rs 91.90 per litre, while diesel was priced at Rs 84.83 per litre.
This follows a continuous hike in the fuel rates, with petrol at Rs 87.60 a litre in Delhi and Rs 94.12 in Mumbai on Wednesday.
Diesel rates too saw a similar spike. Rates vary from state to state depending on the local incidence of taxation (VAT) and freight.
Speaking on the price increase, Oil Minister Dharmendra Pradhan said the government is not considering a reduction in excise duty to cool rates from their record highs.
Rates have risen as international oil prices crossed USD 61 per barrel for the first time in more than a year on improving demand outlook amid the global rollout of Covid-19 vaccines, he said.
Central and state taxes make up for over 61 per cent of the retail selling price of petrol and about 56 per cent of diesel.
Last week, Mukesh Kumar Surana, head of India’s third-largest fuel retailer Hindustan Petroleum Corporation Ltd (HPCL) had said that oil companies have little handle to control retail prices. Bharat Petroleum Corporation Ltd (BPCL) Director (Finance) N Vijayagopal had voiced a similar opinion. Relief to consumers can come from a cut in government taxes, they said.