Petrol and diesel prices touch all-time highs: Details here
What's the story
Petrol and diesel prices on Saturday were hiked by 25 paise per liter each, the second consecutive day of the rate increase, taking the prices to a new record high. Petrol in Delhi is now priced at Rs. 85.70 per liter and in Mumbai Rs. 92.28, a price notification by oil companies said. The rates were increased for the fourth time this week.
Hike
State owned fuel retailers resumed daily pricing after a hiatus
Meanwhile, the diesel rate climbed to Rs. 75.88 per liter in Delhi and Rs. 82.66 in Mumbai. State-owned fuel retailers, Indian Oil Corporation Ltd., Bharat Petroleum Corporation Ltd., and Hindustan Petroleum Corporation Ltd., had on January 6 resumed daily price revision after a month-long hiatus. Since then, rates have gone up by Rs. 1.99 on petrol and Rs. 2.01 in the case of diesel.
Record
Fuel prices had touched record high in 2018
Prior to the current highs triggered by the price hikes this month, fuel prices had last touched a record high on October 4, 2018. At that time the excise duty was cut 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 which they recouped later.
Details
No tax cut under consideration at present
This time, however, there are no indications of a duty cut. Oil Minister Dharmendra Pradhan blamed the Saudi oil output cut for the surge in prices but remained non-committal on tax cuts. Saudi Arabia has pledged additional voluntary output cuts of one million barrels per day in February and March, which has led to prices climbing since the pandemic broke out.
Details
Government-controlled fuel retailers moderating rates since the pandemic broke out
The price hike comes after international oil prices firmed up on hopes of demand returning from the roll-out of coronavirus vaccines in different countries, including India. 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.