Fuel prices across the country continue to hike; this time, the price for one litre of petrol crossed Rs 90 in Maharashtra on Tuesday. Maharashtra has the highest fuel cost among Indian states, mainly because it charges the highest Value-Added Tax. Petrol and diesel in the state are presently taxed at a little over 39 percent, which includes a 26 percent VAT and a surcharge of Rs 9 and Re 1 on petrol and diesel, respectively.

The dip in the value of the Indian rupee against the US dollar and the rise in crude oil prices have both led to the steady rise of fuel prices across India since mid-August. Since the beginning of this year, the rupee has fallen over 13 percent and crude oil has gained 35 percent.

As a result, petrol has surpassed the Rs 90-per-litre-mark in at least 11 cities across Maharashtra, including Parbhani, Nandurbar, Nanded, Latur, Jalna, Jalgaon, Hingoli, Gondia, Beed, Aurangabad and Ratnagiri. Apart from the added VAT, these cities also contend with higher transportation costs in comparison to Mumbai. In Parbhani – which has the most expensive fuel in the state – the price of petrol here has crossed Rs 91 and diesel is set to touch Rs 80-mark.

In Mumbai, petrol and diesel are currently retailing at Rs 89.54 and Rs 78.42 per litre, respectively. In comparison, petrol and diesel in New Delhi are being sold at Rs 82.16 and Rs 73.87 per litre, respectively.

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