Fuel prices see 13th hike in 22 days
Pump rates of auto fuels hit another record on Tuesday as state-run oil companies raised the price of petrol by 23 paise per litre and diesel by 25 paise, the 13th hike in 22 days.
Petrol, which has crossed the ₹100 per litre mark in several cities, is now selling for ₹99.71 a litre in Mumbai, while diesel is being sold at record ₹91.57 per litre in the financial capital. The pump prices of petrol and diesel in Delhi also surged to a new record of ₹93.44 per litre and ₹84.32 a litre, respectively.
While fuel rates in Delhi are the benchmark for the entire country, retail prices of the two fuels differ from place to place because of variations in state taxes and local levies.
In all, since May 4, two days day after the results of assembly polls were declared, the price of petrol has gone up by ₹3.04 and that of diesel by ₹3.59 per litre.
Consumers in several cities, particularly in Rajasthan, Maharashtra and Madhya Pradesh are paying more than ₹100 for a litre of petrol. Some of the cities selling the fuel over ₹100 per litre are Ratnagiri, Parbhani, Aurangabad, Indore, Bhopal, Gwalior, Jaisalmer, Ganganagar, and Banswara.
Surging international oil rates and an exorbitant domestic tax structure are two key reasons for high rates of petrol and diesel in the country. Global oil prices rose on demand optimism and a snag on the possibility of lifting US sanctions on Iranian crude supply. The benchmark Brent crude surged 0.32% to $68.68 per barrel in early trade on Tuesday.
Pump prices of fuels are also high because of taxes. In Delhi, central levies account for 35.5% of petrol’s price and state taxes 23%, according to an official data of May 16. On diesel, central taxes are over 38.2% while state taxes are about 14.6%.