Petrol prices in Mumbai have risen past the100-rupee-a-litre mark for the first time ever, among the costliest in the country and almost twice the price in New York. Retail prices in the city are up 11% this year and reached ₹ 100.4 rupees a litre on Monday, Indian Oil Corporation data shows.
The equivalent price in the US financial center is $0.79 (around ₹57), according to calculations based on figures from the New York State Energy Research and Development Authority. Indian fuel prices have soared in the past year as PM Modi’s administration has repeatedly raised sales taxes to cushion worsening public finances. Levies now make up around 60% of the retail price and federal taxes on petrol and diesel have surged nearly sixfold since 2013.
The steep increase in taxes on the two fuels, which account for more than half of India’s oil consumption, comes as the Covid-19 pandemic pummels demand in the world’s third-biggest crude importer. Sales of the two fuels in May are about a third lower than pre-virus levels in 2019 as large parts of the nation remained under local lockdown to battle the world’s worst coronavirus wave.