State-run oil companies raised petrol price by 19 paise and diesel by 21 paise per litre on Wednesday in the second such increase in two days after the assembly election process in four states and a Union territory ended last week.
The pump prices of petrol have been raised by 35 paise a litre in two days and diesel by 39 paise after fuel rate increase was paused for 66 days since February 27, a day after the Election Commission of India announced elections in four states and one Union territory.
Automobile fuels are expected to become costlier further for two reasons—recovery of past revenue losses (because price hike was suspended for about two months), and surging international crude oil rates, two executives of public sector oil marketing companies (OMCs) said, requesting anonymity.
With the latest rate increase, petrol was being sold at Rs.90.74 per litre and diesel at Rs.81.12 a litre in Delhi. Fuel rates vary across the country due to varying state levies.
Fuel rates in India are also high because of central and state taxes. Central and state levies account for a big chunk of the retail price of fuel. In Delhi, for instance, central levies account for over 36% of petrol’s retail price, and state levies 23%.
{{/usCountry}}Fuel rates in India are also high because of central and state taxes. Central and state levies account for a big chunk of the retail price of fuel. In Delhi, for instance, central levies account for over 36% of petrol’s retail price, and state levies 23%.
{{/usCountry}}The last price reduction had taken place on April 15.