Mumbai, Jan 6: Fuel prices in Mumbai are now the highest in the country. Petrol price was hiked by Rs 1.79 on Sunday to Rs 81.31 per litre and diesel by over a rupee to Rs 62.60.
This was the second hike in just two days, the last one being a 96-paise and 62-paise increase on Friday.
While Friday's hike was part of an uniform increase announced across the country, the rate hike on Sunday was only "state specific". Dealers and pump owners have opposed the hike, calling it "unwarranted". Sources in the oil industry said that the hike has occurred only in Mumbai and Kolkata.
"The price has been revised in Mumbai as part of a state specific cost recovery," said a senior oil company official.
A senior BPCL official told TOI, "Certain states revise their cost every quarter and we pass on the increase in state cost to the consumers. There was no revision in the state cost last quarter. However, this quarter they decided to increase the cost so we have no choice but to pass it on to the consumer."
Ravi Shinde of the Petrol Dealers' Association said, "We (petrol pump owners) were kept in the dark till late Saturday night. There was a lot of ambiguity and at the eleventh hour, we were informed that the oil companies have revised retail prices of petrol and diesel in the state. At around midnight, we revised the prices. It is a state specific cost recovery by the oil companies—something we are opposed to." The petrol pump owners have threatened to agitate and may take up the matter with the petroleum ministry.
Said another association member Venkat Rao, "It is a huge additional burden on our customers and will also affect our sales. The Centre should announce uniform hike in petrol prices across the country and not allow oil companies to recover any state specific costs." While petrol rate per litre was increased from Rs 79.52 to Rs 81.31 from Sunday, the price of diesel went up from Rs 61.42 to Rs 62.60.
There is a huge public outcry over the price hike. Commuters said that it was equally expensive to ply either petrol or diesel cars. "We are facing inflation and regular increase in prices, be it fuel cost or public transport fares. Travelling by road has become costly," said Aniruddha Dey, a motorist from the suburbs.
The increase in diesel prices may have an impact on transportation cost of fruits, vegetables and other essential commodities and this will also lead to further inflation, said consumer activist Sunil Mone.
Activist G R Vora said that it reflected badly on the government and consumer groups will oppose such hikes. "It will increase the overall transportation costs in Mumbai and is frustrating for the common man," he said.
The diesel price hike may also have an impact on the fares of state transport buses, sources said. BEST runss close to 1,800 buses on diesel. However, it has already announced a fare hike from April 1 this year in the range of Rs 1 to Rs 5 depending on distance travelled. "We will not have any more hike between January and March," said an official.
Ashwin Rao, who regularly drives to work, said he would now prefer to keep his petrol car at home. "It is so frustrating. We don't have a proper public transport system such as AC buses or BRTS. The government should look at alternatives before announcing fuel price hikes or planning hefty taxes for cars," he added.
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