Petrol price highest in 4-years, diesel hits highest ever
What's the story
Petrol prices hit Rs. 73.73 per litre in the national capital today, the highest in four years; it was Rs 76.06 in September 2014. Price of diesel shot up to Rs. 64.58 too, an all-time high. Before today, the highest diesel price ever recorded was Rs. 64.22 on February 7, 2018.
Dynamic pricing
Government's step to bring transparency makes fuel costlier
In June 2017, the government decided to revise fuel pricing daily, as opposed to earlier when it happened fortnightly, to bring transparency in pricing. Since then, petrol prices have seen a jump of 12%, and diesel 18%. There has been a 63% rise in price of crude oil for Indian basket, but the appreciation of rupee against dollar has helped companies cushion the increase.
Details
India has highest retail prices for fuel in South Asia
From January'14 to January'16, Finance Minister Arun Jaitley raised excise duty nine times, but cut tax only once in October'17, by Rs. 2. Compared to the UPA government, the NDA gets Rs 10/litre more on excise duty on petrol and Rs 11/litre more for diesel. Earlier, the Oil Ministry sought a reduction in excise duty, but the finance ministry ignored it in the budget.
Data
Governments and petrol pumps thrive while common man suffers
The Center isn't the only one enjoying benefits of lower crude oil prices. States have been getting their VAT: Delhi's earnings rose 31% on petrol and 44% on diesel. Even commission of pump-owners went up by 80% on petrol and 111% on diesel during April'14-March'18.