E-Paper
Prices rise; petrol costlier by ₹4.36/lt, diesel by ₹4.93/lt since May 4
Mumbai has the highest rate among metros. Petrol is currently sold at ₹100.98 per litre in the financial capital and diesel at ₹92.99
The upward movement of fuel rates continued unabated for the eighteenth time since May 4 as state-run oil companies raised petrol price by 27 paise and diesel by 28 paise on Friday.
Petrol is now costlier by ₹4.36 per litre and diesel by ₹4.93 per litre across the country since May 4, a day after results of five assembly polls were declared.
The latest hike took auto fuel rates to yet another record. The unidirectional upward movement this month saw petrol breaching ₹100 mark in various cities across the country, particularly in Maharashtra, Rajasthan, Andhra Pradesh and Madhya Pradesh. Some of the cities selling the fuel for over ₹100 per litre are Mumbai, Ratnagiri, Parbhani, Aurangabad, Jaisalmer, Ganganagar, Banswara, Indore, Bhopal, Gwalior, Guntur and Kakinada.
Pump price of petrol in Delhi jumped to ₹94.76 per litre and diesel to ₹85.66 on Friday. Mumbai has the highest rate among metros. Petrol is currently sold at ₹100.98 per litre in the financial capital and diesel at ₹92.99.
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.
Also Read | The untapped green potential of agroforestry
Surging international oil rates and exorbitant domestic tax structure are two key reasons for high rates of petrol and diesel in pumps.
Fuel rates at pumps jumped even as international oil prices softened a bit on Thursday. Indian fuel retailers align pump prices of petrol and diesel with their international benchmark rates of previous day. Benchmark Brent crude, which fell marginally by 0.06% at $71.31 per barrel on Thursday, was trading 0.15% down at $71.20 a barrel in the early trade on Friday.
Pump prices of fuels are also high because of taxes. In Delhi, central levies account for 34.8% of petrol’s price and state taxes, 23.08%, according to an official data of June 1. On diesel, central taxes are over 37.24% while state taxes are about 14.64%. Through 2020, as global crude prices fell, the central government raised excise duty on the fuel to shore up its finances. States too followed suit -- with revenues hit on account of the pandemic.
Even as international oil prices saw volatility in last one months, pump rates of auto fuels in India moved only in the upward direction.
According to executives working in state-run oil marketing companies, pump prices are also high because companies were recovering their past revenue losses like the one suffered for 66 days since February 27 when rates were not raised because of assembly elections in four states and one Union Territory.
During the 66-day pause on rate hike, state-run retailers had also reduced petrol and diesel rates by 77 paise and 74 paise a litre, respectively in four small steps. But, the entire gains to the consumers were quickly reversed in the first four consecutive rounds of rate hikes starting from May 4.
The government deregulated the pricing of petrol on June 26, 2010 and diesel on October 19, 2014. Accordingly, state-run retailers are free to change pump prices every day. Public sector retailers — IOC, Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL)— control almost 90% of the domestic fuel retail market.
