Petrol and diesel prices hiked after over two-week hiatus
Petrol price on Tuesday was increased by 15 paise per liter and diesel by 18 paise as state-owned fuel retailers started passing on the increase in international oil prices to consumers after an 18-day hiatus. Petrol now costs Rs. 90.55 per liter in Delhi, up from Rs. 90.40 and a liter of diesel comes for Rs. 80.91, as against Rs. 80.73 previously.
Fuel prices were cut around mid-April
Rates have been increased across the country and vary from state to state depending on the local incidence of taxation (VAT). Oil companies, which have in recent months resorted to an unexplained freeze in rate revision, had hit a pause button after cutting prices marginally on April 15. This coincided with electioneering hitting a peak to elect new governments in five states.
Crude oil prices rose due to strong US demand recovery
Despite the concerns about rising COVID-19 cases in India denting demand, crude oil prices in the international market have risen primarily on account of strong US demand recovery and a weak dollar. Prices have been on a continuous uptrend since April 27, an industry official said adding Dubai crude oil price has risen by $2.91 per barrel.
The April 15 cut was fourth reduction since March 24
State-owned fuel retailers, Indian Oil Corporation Ltd., Bharat Petroleum Corporation Ltd., and Hindustan Petroleum Corporation Ltd., are supposed to revise rates daily based on input cost. The April 15 cut of 16 paise a liter on petrol and 14 paise on diesel was the fourth reduction since March 24. In four reductions, petrol price came down by 67 paise and diesel by 74 paise.
Petrol costs Rs. 96.95 a liter in Mumbai
Central and state taxes make up for 60 percent of the retail selling price of petrol and over 54 percent of diesel. The union government levies Rs. 32.90 per liter of excise duty on petrol and Rs. 31.80 on diesel. In Mumbai, the petrol price was hiked to Rs. 96.95 a liter on Tuesday, while diesel rates increased to Rs. 87.98 from Rs. 87.81.
