Petrol Price Breaks its Day-Old Record to Hit Rs 86.72, BJP's Nalin Kohli Calls it 'Good News'

New Delhi: As petrol and diesel set a new record on Tuesday with Oil Marketing Companies (OMCs) raising rates by 16 paise per litre and 19 paise per litre, BJP national spokesman Nalin Kohli caused an outrage by calling the hike “good news".

“Rise in fuel prices is good news for states as they will be able to ear more revenue by way of VAT...yes the centre also earns by way of excise but the states will also get the advantage," Kohli told News 18. He added, “My point is, this is a good time to bring petrol under GST."

In Mumbai, petrol hit Rs 86.72 per litre and the price of diesel remained static at Rs 75.74 per litre on Tuesday. In New Delhi, petrol and diesel now cost Rs 79.31/litre and Rs 71.34/litre respectively, according to a price notification issued by Indian Oil Corporation. In Chennai, petrol price rose 17 paise/litre to Rs 82.41/litre.

These prices vary significantly across states depending on various tax levies and cess. The surge in fuel prices can be largely attributed to the spike in global crude prices.

Pushed by the dramatic fall in rupee and a sharp rise in crude oil, the prices of the two automobile fuels had hit an all-time high at Rs 86.56 and Rs 75.54 a litre respectively in Mumbai on Sunday. The selling price of petrol was increased to ₹86.56 per litre in Mumbai, ₹78.84 in Delhi, ₹81.76 in Kolkata and ₹81.92 in Chennai.

In the past five months, petrol and diesel prices have gone up by Rs 4.66 a litre and Rs 6.35 a litre. Petrol in Delhi was selling at Rs 78.52 per litre, nine paise higher than its previous record high of 78.43 on May 29 this year. In Kolkata, Mumbai and Chennai, petrol prices stood at Rs 81.44, Rs 85.93, Rs 81.58 per litre respectively.

The petrol prices on May 29 in Delhi, Kolkata, Mumbai and Chennai were Rs 78.43, Rs 81.06, Rs 86.24 and Rs 81.43 respectively.

"Such a situation has arisen due to the rise in crude oil price in international market and devaluation of Indian rupee against US Dollar. The government is concerned about it," oil minister Dharmendra Pradhan said on Monday.