Petrol prices near Rs 100/litre in Mumbai, why are fuel prices rising?

Fuel prices differ from state to state depending on the incidence of local taxes such as VAT and freight charges. Rajasthan levies the highest value-added tax (VAT) on petrol in the country, followed by Madhya Pradesh and Maharashtra.

New Delhi: Petrol and diesel rates have been kept unchanged on Wednesday by the oil marketing companies. Fuel prices have witnessed sporadic rise in the last few days. Petrol price inched towards the Rs 100-mark in Mumbai on Tuesday after fuel rates were hiked again. Petrol price was increased by 23 paise per litre and diesel by 25 paise a litre, according to a price notification of state-owned fuel retailers. The hike - 13th this month - pushed petrol and diesel prices to record-high levels across the country. Petrol price in Delhi rose to Rs 93.44 a litre and diesel to Rs 84.32 a litre. In Mumbai, petrol price climbed to Rs 99.71 a litre and diesel to Rs 91.57 per litre. Rates had already crossed the Rs 100-mark in several cities in Rajasthan, Madhya Pradesh and Maharashtra and with the latest increase, the price in Mumbai too was inching towards that level.