Petrol price on Thursday reached to an all-time high of Rs 84.20 per litre in Delhi after state-owned fuel retailers hiked rates for the second day in a row. This being the highest ever petrol price in Delhi, after October 4, 2018 when its price had risen to Rs 84 a litre.
Meanwhile, diesel prices in Mumbai were at a record high of Rs 81.07 per litre and that of petrol is Rs 90.83 a litre.
Petrol prices have breached all-time high levels in the new year as rising global oil prices have forced the fuel marketing companies to raise the pump price of auto fuels for the second time this year on Thursday.
Retail prices of fuel in India are revised daily by oil marketing companies based on international crude oil rates and rupee's exchange value. However, local taxes add to the burden for consumers.
Meanwhile, the central government had raised excise duty by Rs 13 per litre on petrol and by Rs 15 a litre on diesel in two instalments in March 2020 and May 2020 to garner additional revenue. Also to make up for the loss of revenue during the lock down, states have also increased their taxes sharply on the two fuels post COVID-19.
Meanwhile in Chennai, the petrol price currently is Rs 86.96 a litre, lower than historic high level of Rs 87.33 a litre. Similarly, petrol price also reached very close to record level of Rs 85.80 a litre in Kolkata increasing to Rs 85.68 a litre on Thursday.
Experts say, after going on a pause mode during the lock down period the oil manufacturing companies patience of holding back fuel prices was broken on Wednesday when they increased the retail price of petrol and diesel for the first time this year.
With benchmark Brent crude on the rise for the past few days over the news of coronavirus vaccine being rolled out and continuation of production cuts by OPEC+, fuel prices in India could see further rise in coming weeks.
The increase in fuel prices comes after a jump in oil prices in the international market, where brent crude is currently trading at close to $55 a barrel, a $ 5 increase in just around a weeks’ time.
Common man is worried about the rising fuel prices with concerns that petrol prices might touch Rs 100 per litre making things worse for them.