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Wednesday, August 04, 2021

Petrol up 27p a litre, tops `100 in 7 states; diesel hiked by 23p

Petrol is retailing at over Rs 100 per litre in seven states — Rajasthan, Madhya Pradesh, Andhra Pradesh, Telangana, Maharashtra, Karnataka and Ladakh.

By: ENS Economic Bureau | New Delhi |
June 13, 2021 3:17:47 am
In Delhi, petrol hit an all-time high of Rs 96.12 a litre, while diesel is now priced at Rs 86.98 per litre. (Representational Photo)

The price of diesel crossed the Rs 100 mark for the first time in Rajasthan after oil marketing companies (OMCs) hiked the price of diesel by 23 paise per litre and that of petrol 27 paise per litre on Saturday.

Diesel is retailing at Rs 100.05 per litre in Sri Ganganagar, Rajasthan post the hike, while petrol is retailing at Rs 107.2 per litre. Sri Ganganagar was also the first town to register petrol prices over Rs 100 in February.

Petrol is retailing at over Rs 100 per litre in seven states — Rajasthan, Madhya Pradesh, Andhra Pradesh, Telangana, Maharashtra, Karnataka and Ladakh. Rising crude oil prices and high taxes on petrol and diesel are the key reason behind petrol and diesel regularly hitting new record high prices in 2021.

OMCs have hiked the prices of petrol and diesel 23 times since early May, raising the price of petrol by Rs 5.7 per litre and that of diesel by Rs 6.3 per litre. In Mumbai, both diesel and petrol are retailing at record highs of Rs 102.3 per litre and Rs 94.4 per litre, respectively.

Fuel prices vary across cities and states depending on state taxes and freight charges.

The price of crude oil has risen from about $51.8 at the beginning of the year to about $72.7 per barrel on Saturday.

Global demand for crude oil has recovered as countries continue expanding their vaccination programs and easing covid-19 related restrictions.

Central and state taxes currently account for about 57 per cent of the price of petrol and about 50 per cent of the price of diesel in the national Capital. The prices of petrol and diesel are benchmarked to a 15-day rolling average of the international prices of the two products.

A number of states including Meghalaya, Assam, Rajasthan and West Bengal have rolled back tax hikes instituted in 2020 as fuel prices have been regularly setting new all-time highs.

The central government, however, has not reversed an excise duty hike of Rs 13 per litre of petrol and Rs 16 per litre on diesel imposed in 2020 to shore up revenues.

Petroleum Minister Dharmendra Pradhan had said earlier this week that now was not the time to discuss cuts in taxes on fuels as the government had low earnings and could not compromise on expenditure, noting that expenditure in the health sector, in particular, had increased.



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