In Mumbai, petrol and diesel prices remained static on July 6, 2021 (Tuesday). Petrol was selling at Rs 105.92 per litre in Mumbai, while diesel was selling at Rs 96.91 per litre. The rupee has also moved lower against the dollar, which has made petrol prices in Mumbai more expensive than before. It is hoped that the government can reduce excise duties, so as to enable rates to become cheaper in the coming days.
Amid the lockdown caused by the Covid-19 pandemic, several state governments had increased fuel taxes to increase revenues and also the central government had raised the excise duty on both automobile fuels.
The state-run oil marketing companies - Indian Oil, Bharat Petroleum, and Hindustan Petroleum align the rates of domestic fuel with that of the global crude oil prices by taking into account any changes in the foreign exchange rates. Any changes in fuel prices are implemented with effect from 6 am every day.
With no signals from the Union government and the states that they will cut taxes on fuel, and a continuous rise in international petroleum prices, relief on this front is unlikely in the near future.