As petrol and diesel rates continued to soar on Monday after reaching a record high a day earlier, school bus operators indicated there could be a hike in bus fees from the second semester in October.
Petrol was being sold at Rs 86.56 per litre (increased by Rs 0.31 per litre) in Mumbai while diesel spurted to a new high of Rs 75.54 per litre (increase by Rs 0.44 per litre).
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Any rally in global crude oil price will impact India's oil import bill and trade deficit as every dollar increase in oil prices would impact import bill by around ₹10,700 crore on an annual basis.
Azar Jammine, the chief economist at Econometrix, said he was fascinated to note that the petrol price was not going to increase this month, apart from the slight increase for the salaries of forecourt staff. In Kolkata, a litre of petrol cost Rs. 82.06, while in Chennai it was priced at Rs. 82.24. "This is a once-off temporary intervention to provide some relief to motorists and consumers against fuel price hikes". Because the price is built up by excessive taxes on petrol and diesel. The excise duty has remained unchanged for the past four months but the Value-Added Tax applied on diesel today is Rs 10.12 per litre and that on petrol is Rs 16.42 per litre.
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Fuel prices vary from state to state due to local levies. This had also led to several transport unions holding agitations in July and demanding the government to bring petrol and diesel under the ambit of GST. Mumbai continues to have the highest rate for petrol among all metro cities, sources in the oil industry said. 5 cents a litre, while the reference price of 95 octane unleaded petrol will top 1 euro 60 a litre.
"This suggests they (the government) are going to absorb this. Secondly, global currencies have weakened against the USA dollar", Pradhan had said in Surat.
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