MUMBAI: Petrol price in Mumbai hit an all-time high on Monday, with the city’s 11 lakh motorists and 23 lakh bikers bound to feel the pinch. Retail rate at over 200 city pumps rose to Rs 91.8 per litre—breaching the last highest of Rs 91.34 on October 4, 2018.
Diesel, too, set a new record with a hike of 27 paise taking the price from Rs 81.60 to Rs 82.13 a litre. The price of petrol in Parbhani district continues to be the highest in the country at a revised rate of Rs 93.97. Since March 2020, petrol price in Mumbai has increased by over Rs 16 a litre.
“This is ridiculous. During peak hours, due to traffic snarls, we have to drive cars at speeds as low as 10-15 kmph. We waste a lot of fuel in traffic jams and the petrol price hike will hit us hard,” said Abhishek Das, an officegoer, who takes his car from Thane to Andheri.
Transporters say this is the highest rate so far and an increase in cost of essential goods, fruits and vegetables is an inevitable fallout. “It is actually diesel cost that has hit our industry, which is on the brink of collapse, especially small transporters,” said a Chembur transport firm owner. As on date, 65% trucks are lying idle due to transportation costs—65% of which comprises fuel and 20% is toll.
“Skyrocketing diesel prices are adding to the stress of transporters. Asset idling is at its peak and there are mounting losses. Are we headed toward doomsday?” said Abhishek Gupta from Bombay Goods Transport Association.
Officials said that the price rise was not just due to fluctuations in international crude oil prices, but also due to the value of rupee vis-a-vis the dollar.
The fuel price hike will have a cascading effect on the industry, an expert said. “It will increase prices of all FMCGs, white goods, cement, steel etc,” he said.
Since May 2020, petrol and diesel prices have risen by over Rs 15 a litre. Petrol had escalated from Rs 76.31 on April 2, 2020 to Rs 90.34 on December 7 and Rs 90.6 on January 6, touching Rs 91.32 on January 14 and escalating to Rs 91.56 on Monday.
Similarly, diesel shot up from Rs 66.2 in April last year to Rs 80.5 in December and Rs 80.7 on January 6 before touching Rs 81.60 on January 14 and now Rs 81.87.
The increasing taxes and VAT which are the highest in Maharashtra has upset consumers.