Petrol nears Rs. 91/liter mark in Delhi after latest hike
What's the story
Petrol price on Tuesday neared the Rs. 91 per liter mark in Delhi and diesel crossed Rs. 81 a liter as fuel prices were hiked again after a two-day pause. Petrol and diesel prices were raised by 35 paise per liter each, sending retail rates to an all-time high, according to a price notification of state-owned fuel retailers.
Fuel prices
Fuel prices rose for 12 straight days before hitting pause
The increase pushed petrol price to Rs. 90.93 a liter in Delhi and to Rs. 97.34 in Mumbai. Diesel - the most consumed fuel in the country - now comes for Rs. 81.32 a liter in the national capital and for Rs. 88.44 in Mumbai. Fuel prices had risen for 12 straight days before hitting a two-day pause button on February 21 and 22.
Increase
Increase follows a spurt in oil prices in international market
The increase follows a spurt in oil prices in the international market, on which India is dependent to meet its 85 percent of crude oil needs. Brent oil crossed $66 a barrel on Tuesday as US output was slow to return after a deep freeze in Texas shut production last week.
Petrol price
Petrol price surged past Rs. 100-mark in Rajasthan and MP
Petrol prices have been raised by Rs. 4.63 per liter in February and by Rs. 7.22 in 2021. Diesel rates have gone up by Rs. 4.84 a liter in February and by Rs. 7.45 in 2021. Petrol price has already surged past the Rs. 100-mark in some places in Rajasthan and Madhya Pradesh, which levy the highest value-added tax (VAT) on the fuel.
Information
Opposition parties have been slamming Centre for the hikes
Retail pump prices differ from state to state depending on the local taxes and freight. The increase in fuel prices has been criticized by opposition parties such as Congress that said that the Narendra Modi government should have cut excise duty to ease consumer pain.
Government
International rates dipped in 2020, Centre raised taxes subsequently
The Modi government had raised taxes to scoop out the benefit that arose from international oil rates plunging to a two-decade low in April/May last year. While global rates have rebounded with pick-up in demand, the government has not restored the taxes. Central and state taxes make up for 60 percent and 54 percent of the retail selling price of petrol and diesel respectively.