Hiked prices of petrol and diesel reach new highs
What's the story
Petrol and diesel prices on Thursday were hiked by 25 paise per liter each, the second consecutive day of increase in rates, taking the prices to new highs. Petrol now costs Rs. 84.70 per liter in Delhi and diesel costs Rs. 74.88, a price notification by oil marketing companies said. Earlier, rates were hiked by 25 paise each on Wednesday after a five-day hiatus.
Information
Diesel is at an all-time record high in Mumbai
Meanwhile, diesel is at an all-time record high in Mumbai. Petrol costs Rs. 91.32 a liter there and diesel is priced at Rs. 81.60. Mumbai had recorded the highest level for petrol on October 4, 2018, when it was priced at Rs. 91.34 per liter.
Rate hike
State owned fuel retailers resumed daily pricing after a hiatus
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.
Details
The price increase cycle resumed after international oil prices rose
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.
Previous rates
Previous highest petrol rate in Delhi was recorded in 2018
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.
Details
Government-controlled fuel retailers moderating rates since the pandemic broke out
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.
Details
Since May 2020, petrol price has risen by Rs. 15.04
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.