Petrol price in the national capital crossed the Rs 85-mark, while diesel retailed at a record high in Mumbai at Rs 82.13. The surges happened after fuel prices were raised by 25 paise each per litre on Tuesday.
Every litre of petrol will now cost you Rs 85.20 if you are in Delhi; meanwhile, diesel is being sold for Rs 75.38, according to a price notification from oil marketing companies.
In Mumbai, the price of petrol soared to an all-time high of Rs 91.80 a litre, breaching the previous high of Rs 91.34 recorded on October 4, 2018. Diesel price, on the other hand, has gone up to Rs 82.13.
The cost of petrol in Chennai and Kolkata is Rs 87.85 and Rs 86.63 per litre, respectively. That of diesel in Chennai and Kolkata has risen to Rs 80.67 and Rs 78.97 per litre, respectively.
State-owned fuel retailers—Indian Oil Corporation Ltd., Bharat Petroleum Corporation Ltd., and Hindustan Petroleum Corporation Ltd.—had on January 6 resumed daily price revisions after nearly a month-long hiatus.
This was started after international oil prices firmed up on hopes of demand returning following the roll out of COVID-19 vaccines in different countries, including India.
The highest-ever rate of diesel in Delhi was recorded on October 4, 2018—Rs 75.45 a litre. On that day, petrol was priced at Rs 84 a litre.
The government had responded to the situation in October 2018 by cutting excise duty on petrol and diesel by Rs 1.50 per litre, to ease inflationary pressure and boost consumer confidence. Simultaneously, state-owned fuel retailers had cut prices by another Re 1 a litre, which they recouped later.
Petrol and diesel rates need to be revised daily in line with the benchmark international price and foreign exchange rates; however, government-controlled fuel retailers have been moderating the rates since the pandemic broke out.
This after they adjusted a Rs 13 per litre hike in excise duty on petrol and Rs 15 a litre on diesel against a decrease in the retail selling price that was warranted by crude oil prices slumping to an average of USD 19 per barrel in April.
Excise duty totals Rs 32.98 per litre on petrol and Rs 31.83 on diesel. VAT in Delhi totals to Rs 19.32 a litre on petrol and Rs 10.85 on diesel. With international oil prices rebounding from the lows of April, retail rates in India too have been revised. Since May 2020, petrol price has risen by Rs 15.29 per litre and that of diesel by Rs 12.84 per litre, according to price notifications of oil companies.