Hiked prices of petrol and diesel reach new highs

State-owned fuel retailers, Indian Oil Corporation Ltd (IOC), Bharat Petroleum Corporation Ltd (BPCL), and Hindustan Petroleum Corporation Ltd (HPCL), had on January 6, resumed daily price revision after nearly a month-long hiatus.

Rates were hiked for two consecutive days, totaling 49 paise for petrol and 51 paise for diesel, before they hit a pause button again.

The price increase cycle resumed on Wednesday, after international oil prices rose to their highest level since February 2020, before the coronavirus outbreak in China began spreading across the world, forcing lockdowns that shaved off demand.

Rates, however, eased a bit on Thursday with Brent down 11 cents to $55.95 per barrel while NYMEX light sweet crude was down 10 cents at $52.81.

Prior to this, the highest petrol rate (Rs. 84) in Delhi was registered on October 4, 2018. Diesel touched an all-time high of Rs. 75.45 a liter.

The government cut excise duty on petrol and diesel by Rs. 1.50 per liter in a bid to ease inflationary pressure.

Alongside, state-owned fuel retailers cut prices by another Re. 1 a liter, which they recouped later.

Though petrol and diesel rates are to be revised on a daily basis in line with benchmark international price and foreign exchange, government-controlled fuel retailers have been moderating rates since the pandemic broke out.

They had adjusted a Rs. 13 per liter hike in excise duty on petrol and Rs. 15 a liter on diesel, against a decrease in the retail selling price.

The decrease was warranted by crude oil prices falling to an average of $19 per barrel in April.

Excise duty totals Rs. 32.98 per liter in petrol and Rs. 31.83 in diesel. VAT in Delhi totals to Rs. 19.32 a liter on petrol and Rs. 10.85 on diesel.

Since May 2020, petrol price has risen by Rs. 15.04 and diesel by Rs. 12.59.