Petrol, diesel prices up by 25 paise per liter each
Petrol and diesel prices on Wednesday were hiked by 25 paise per liter each, the third increase this week, propelling petrol price to cross Rs. 100 per liter mark in more cities including Bhopal and Indore. Petrol and diesel prices are now at a record high across the country, price notification of state-owned fuel retailers showed.
This is the third increase in prices this week
In Delhi, petrol now comes for Rs. 92.05 per liter and diesel on the other hand is priced at Rs. 82.61. This was the third increase in prices this week and the seventh hike since May 4 when the state-owned oil firms ended an 18-hiatus in rate revision they observed during assembly elections in states like West Bengal.
Fuel prices differ from state to state depending on VAT
The price increase led to petrol rates crossing the Rs. 100 mark in more places in Rajasthan, Madhya Pradesh, and Maharashtra. Fuel prices differ from state to state depending on the incidence of local taxes such as value-added tax (VAT) and freight charges. Rajasthan levies the highest VAT on petrol in the country, followed by Madhya Pradesh.
Bhopal is first state capital to cross Rs. 100 mark
Bhopal on Wednesday earned the distinction of being the first state capital in the country to see petrol cross the Rs. 100 mark. Petrol in the city now costs Rs. 100.08 a liter. Indore had petrol priced at Rs. 100.16 per liter.
Excise duty on fuel increased to all-time high last year
Sri Ganganagar district of Rajasthan had the costliest petrol and diesel in the country at Rs. 102.96 per liter and Rs. 95.33 a liter, respectively. In seven increases, petrol price has risen by Rs. 1.66 per liter and diesel by Rs. 1.88. In March last year, the government raised excise duty on fuel to an all-time high.
Oil companies halted rate revision after marginal cut in April
Since March 2020, petrol price has increased by a record Rs. 22.46 per liter (after accounting for a handful of occasions when rates fell) and diesel by Rs. 20.32. Oil companies, that in recent months resorted to an unexplained freeze in rate revision, had hit a pause button after cutting prices marginally on April 15.
Oil companies indicated an impending increase after elections ended
This coincided with electioneering hitting a peak to elect new governments in five states including West Bengal. No sooner had voting ended, oil companies indicated an impending increase in retail prices in view of the firming trend in international oil markets.