Petrol and diesel prices continued to rise as prices were hiked for 19th consecutive day. The price of petrol is increased on Thursday by 16 paise a litre while that of diesel by 14 paise a litre.
According to the official website of Indian Oil Corporation, petrol now costs Rs 79.92 per litre in Delhi, Rs 86.70 per litre in Mumbai. Similarly, diesel costs Rs 80.02 a litre in Delhi, Rs 78.34 a litre in Mumbai. Diesel price for the first time in living memory crossed the rate of petrol in the national capital.
The Delhi government had on May 5 hiked Value Added Tax (VAT) on diesel from 16.75 per cent to 30 per cent and on petrol from 27 per cent to 30 per cent. Since the levy is ad valorem, the actual incidence has gone up every single time oil companies raised retail selling price in the last 19 day.
The 19th daily increase in rates since oil companies on June 7 restarted revising prices in line with costs after ending an 82-day hiatus in rate revision, has taken diesel prices to fresh highs.
Oil marketing companies have been adjusting retail rates in line with costs after an 82-day break from rate revision amidst the COVID-19 pandemic. These firms on June 7 restarted revising prices in line with costs. The freeze in rates was imposed in mid-March soon after the government hiked excise duty on petrol and diesel to shore up additional finances.