Mumbai, January 23: In an alarming development, petrol and diesel prices touched a 40-month high in Mumbai on Tuesday. People woke up to their worst nightmare as fuel prices in India's business capital- Mumbai stood at Rs 80.25 on Tuesday while diesel rose to Rs 67.30. On Monday, petrol price in Mumbai was Rs 80.10 per litre, while diesel was priced at Rs 67.10. To recall, the last time fuel prices crossed this high was in August 2014.

Petrol and diesel prices in Mumbai are the highest among all metros. On Tuesday, petrol prices in Mumbai stood at 80.25, while in the national capital, petrol was priced at Rs 72.38. Meanwhile, in Kolkata, petrol stood at 75.09 while in Chennai it was priced at Rs 75.06. Diesel price stood at 67.30, in Kolkata it stood at 65.86, in Delhi it was 63.20 while in Chennai, diesel was priced at Rs 66.64.

During the past week, petrol prices across India have gone up by 1-2 per cent while diesel prices are up 2 per cent in most major cities.  As per reports by TOI, petrol price increased by Rs 2.09 per litre, while diesel price increased by Rs 3.2 a litre since January 1, 2018. Petrol and diesel prices constitute 20% of the total composition of the inflation index. As per details by experts, the price increase in the first three weeks of the new year is the highest and the rising price is bound to affect the inflation in the coming days.

Petrol Prices in Metro Cities Today (January 23, 2018)

Metros Prices
Mumbai 80.25
Delhi 72.38
Kolkata 75.09
Chennai 75.06

Diesel Prices in Metro Cities Today (January 23, 2018)

Metros Prices
Mumbai 67.30
Delhi 63.20
Kolkata 65.86
Chennai 66.64

Union minister for petroleum and natural gas Dharmendra Pradhan on Sunday said that the government was trying to bring petrol, diesel and kerosene under the ambit of Goods and Services Tax (GST).  "We are trying that petrol, diesel and kerosene should also come under the ambit of GST. We are hopeful that the GST Council will agree to it shortly," the Petroleum and Natural Gas Minister told reporters in Ujjain. The Minister further added saying that the surge in fuel prices in the international market has pushed the fuel prices in India as well.

In October 2017, when petrol price had reached Rs 70.88 per litre in Delhi and diesel was priced at Rs 59.14, the government had lowered excise duty by Rs 2 per litre. Once fuel prices are brought under the Goods and Services Tax (GST), prices of petrol and diesel are likely to stabilise as it will do away with the excise duty imposed by the Centre and the Value Added Tax (VAT) levied by the states. Under GST, the maximum tax imposed on petrol and diesel will be capped at 28 per cent. The government, however, may choose to levy an additional cess on diesel and petrol.

(The above story first appeared on LatestLY on Jan 23, 2018 11:22 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).