Fuel Price Hike Adds To Burden On Transport Sector, Common Citizens As Petrol Crosses ₹106 In Mumbai

Mumbai, May 15: A fresh increase in fuel prices on Friday has added pressure on transport operators and common citizens already struggling with rising expenses. After a Rs 2 rise in CNG prices earlier in the day, petrol and diesel prices were also increased by nearly Rs 3 per litre.

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Following the latest revision, petrol in Mumbai crossed Rs 106 per litre, while diesel reached around Rs 93, triggering concern across the transport and travel sector.

The hike is expected to increase transportation costs, impact prices of essential commodities, and add to inflationary pressure in the coming weeks.

Transport sector expresses concern

Private bus operators, taxi unions, app-based cab drivers, and goods transporters said the sudden hike has come at a difficult time as bookings for the ongoing peak travel season were already accepted at older rates. Many operators said they are finding it difficult to immediately pass on the additional burden to customers.

Harsh Kotak of the Private Bus Association said the industry was shocked by the steep increase. “Due to repeated government assurances, fares were not revised. Most bookings during the peak season are confirmed several days in advance. It is now becoming difficult both to recover the additional cost from passengers and for operators to absorb the losses,” he said.

Nitin Dosa, Chairman of the Western India Automobile Association, linked the situation to larger national concerns and said commercial transport operators were facing multiple challenges.

“People should be prepared for difficult situations. Fuel availability issues, rising operational costs, and driver-related problems are affecting the transport sector,” he said.

Transporters warn of inflationary impact

Transport leader Baba Shinde, President of Maharashtra State and Affiliated Transport Organisations, warned that the latest hike would directly impact auto-rickshaws, taxis, buses, and goods transport services. He said transporters were already under financial stress because of continuous fuel price increases over the last two months.

“The government should immediately consider reducing diesel prices as the latest increase could further push inflation and burden the common man,” he said.

Tour and travel operators also expressed concern ahead of the monsoon tourism season. Agraj Singh of Balaji Tour Travel said higher fuel prices would make travel packages costlier and harder to sell.

Taxi driver Arjun Rajbhar criticised the repeated hikes, saying lower-income groups were finding it increasingly difficult to manage household expenses.

Meanwhile, Chetan Modi of the Petrol Diesel Association claimed the government had already reduced excise duty to support oil companies facing losses and said prices could have been even higher under the present circumstances.

Mumbai fuel prices higher than Delhi

The latest hike has once again highlighted the sharp difference in fuel prices between Mumbai and Delhi. While petrol in Delhi is retailing at around Rs 97.77 per litre and diesel at Rs 90.67, Mumbai residents are paying nearly Rs 106.64 for petrol and Rs 93.14 for diesel. This means Mumbaikars are paying almost Rs 9 more per litre for petrol compared to consumers in the national capital.

The main reason behind the higher prices is taxation. While the Centre imposes uniform excise duty across the country, state governments levy their own VAT and additional cess on fuel.

Maharashtra has one of the highest VAT structures among major states, pushing retail prices significantly higher than Delhi. Local taxes and levies form a major portion of the final fuel price paid by consumers at petrol pumps.

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'Salaries Not Increasing, Expenses Keep Rising': Mumbai Commuters Feel The Heat As Centre Raises Petrol, Diesel Prices

Industry warns of logistics crisis

“Fuel price hike is crippling transporters, disrupting supply chains, and increasing logistics costs, pushing India’s road transport sector towards crisis,” said Bal Malkit Singh.

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