Petrol prices touch new high of Rs. 84.45 in Delhi
What's the story
Petrol price on Wednesday touched a new high of Rs. 84.45 per liter in Delhi after state-owned fuel retailers hiked prices following a five-day hiatus. Petrol and diesel prices were hiked by 25 paise per liter, a price notification by oil marketing companies said. In Delhi, while petrol now costs Rs. 84.45 per liter, diesel would lighten the consumers' pockets by Rs. 74.63.
Information
Diesel at a record high in Mumbai
On the other hand, diesel is at a record high in Mumbai. While petrol will cost you Rs. 91.07 a liter in the city, diesel's current rate is Rs. 81.34. The highest petrol price recorded in Mumbai is Rs. 91.34, registered on October 4, 2018.
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State-owned fuel retailers resumed daily price revision after a hiatus
Indian Oil Corporation Ltd., Bharat Petroleum Corporation Ltd., and Hindustan Petroleum Corporation Ltd. had on January 6 resumed daily price revision following a month-long hiatus. Rates were hiked for two consecutive days, totaling 49 paise for petrol and 51 paise for diesel, before hitting the pause button again. Petrol price had scaled to an all-time high of Rs. 84.20 per liter on January 7.
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The price increase cycle resumed after international oil prices rose
The price increase cycle resumed after international oil prices rose for the seventh day. US West Texas Intermediate (WTI) was up 1.3 percent at $53.88 a barrel, while Brent crude was up 79 cents at $57.37. Both benchmarks are trading at the highest since February, before the coronavirus outbreak in China began spreading across the world, forcing lockdowns that shaved off demand.
Record prices
Other high previously recorded for petrol and diesel
Prior to the January 7 hike, 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 then cut excise duty 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.
Excise duty
Government-controlled fuel retailers moderating rates since the pandemic started
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 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.
Crude oil prices
Decrease was warranted by falling crude oil prices
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. 14.79 and diesel by Rs. 12.34.