Oil puzzle: Retail prices of petrol likely to cross Rs 85-90 in near future

The retail price of petrol in Delhi may reach Rs 85 a litre, while that for diesel reach Rs 73 a litre

Retail prices of petrol and diesel reached record highs on Monday, prompting Petroleum Minister Dharmendra Pradhan to say that the government is exploring all options to soften the blow on consumers. But a Business Standard analysis shows the government is left with no option but to cut excise duties, or prod states to reduce the value-added-tax on petrol and diesel.

If taxes are kept unchanged, the retail price of petrol in Mumbai could cross Rs 90 per litre in the near future if crude oil touches $85 per barrel. This is based on the government’s statement that the crude oil