Petrol and Diesel Price Hike Touched New Heights in India

The cost of petrol is now Rs 84.70 per litre in Delhi and the cost of diesel is Rs 74.88, as notified by oil marketing companies. This has been the second straight day of an increase in the price. There was a 25 paise hike in the rates on Wednesday after a five-day break. The cost of petrol in Mumbai increased to Rs 91.32 a litre from Rs 91.07, while the diesel prices rose from Rs 81.34 to Rs 81.60 per litre.

Prices of petrol and diesel were hiked by 25 paise per litre each on Thursday. This was the second straight day of increase in rates because of which prices touched new heights. The cost of petrol is now Rs 84.70 per litre in Delhi and the cost of diesel is Rs 74.88, as notified by oil marketing companies. This has been the second straight day of an increase in the price. There was a 25 paise hike in the rates on Wednesday after a five-day break. The cost of petrol in Mumbai increased to Rs 91.32 a litre from Rs 91.07, while the diesel prices rose from Rs 81.34 to Rs 81.60 per litre. Petrol price is higher in Delhi but Mumbai is also seeing the highest ever rate of Rs 91.34. Diesel price in Mumbai is also at its highest.

State-owned fuel retailers -- Bharat Petroleum Corporation Ltd (BPCL), Indian Oil Corporation Ltd (IOC), and Hindustan Petroleum Corporation Ltd (HPCL) -- after a month-long halt, on January 6, resumed daily price revision. There was a hike in the rates on two consecutive days before it was stopped. That resulted in a 49 paise for petrol and 51 paise for diesel. The increase in the price cycle resumed on Wednesday, after the international oil prices touched their highest level since February 2020, before the coronavirus outbreak forced lockdowns that cut down the demand.

The highest rate of diesel in Delhi was seen back on October 4, 2018, when it rose to Rs 75.45 a litre mark. On that same day, the cost of petrol was Rs 84. In Mumbai, the highest rate of level for petrol was Rs 91.34, that also happened on the same day. To get the situation in control back in October 2018, the government had responded by cutting excise duty on diesel and petrol by Rs 1.50 per litre to ease inflationary pressure and increase confidence in the consumer. Along with this, state-owned fuel retailers had also cut down prices by another Re 1 a litre, which they recouped later.

Though the rates of petrol and diesel are to be revised on a day-to-day basis in line with benchmark international price and foreign exchange, government-authorised fuel retailers have been slightly changing the rates since the pandemic started. After this, they had adjusted a Rs 13 per litre hike in excise duty on petrol and Rs 15 a litre on diesel, against a decrease in the retail selling price. The excise duty is Rs 32.98 per litre in petrol and Rs 31.83 in diesel. VAT in Delhi is Rs 19.32 a litre on petrol and Rs 10.85 on diesel. After the rebounding of the international oil prices from the lows of April, the retail rates in India were also revised. Since May 2020, petrol price has risen by Rs 15.04 per litre and diesel by Rs 12.59 a litre, as notified by the oil companies.