Covid-19 lockdown: Assam hikes petrol price by Rs 6, diesel by Rs 5 while international crude prices tank

Assam government announced an increase in prices of petrol and diesel that has come into effect from Wednesday

While international oil prices have crashed as the world grapples with the unprecedented crisis triggered by the outbreak of coronavirus, Assam has gone against the trend by deciding to hike the retail prices for petrol and diesel.

Crude oil prices have crashed in international markets. (HT Photo)

The state announced an increase in price by nearly Rs 6/litre for petrol and nearly Rs 5 per litre for diesel. A notification in this regard was issued on Tuesday by the state’s finance (taxation) department.

The notification issued by principal secretary Samir Kumar Sinha under the provision of The Assam Value Added Tax Act, 2003, came into effect from 12:00 am on April 22.

Effectively, the price of petrol increased from Rs 71.61 to Rs 77.46 per litre and the price of diesel increased from Rs 65.07 to Rs 70.50 per litre.

The last few days have seen a consistent decline in the crude oil prices in international trading markets. The prices of Brent crude oil, which is bought by India, have crashed to below 2001 levels to reach $16.84 per barrel. It is a dramatic drop from the peak prices of $147 a barrel registered in July 2008.

“Due to a decrease in international oil prices, it will affect the amount Assam gets as royalty for oil from ONGC and Oil India Limited. This increase in prices is an attempt to cover some loss, maybe Rs 50 crore in 30 days. This is a temporary measure and there will be a roll-back once the coronavirus crisis gets over,” said Assam finance minister Himanta Biswa Sarma on Wednesday.

Assam earns an average of Rs 166 crores monthly as royalty from the sale of oil. But due to prices coming down that figure would be less than Rs 50 crore per month, said the minister.