Fuel Prices Reach Record High after 3rd Hike in 3 Days

The seventh price hike makes Bhopal becomes the first capital city to see petrol cross Rs 100

Fuel Prices Reach Record High after 3rd Hike in 3 Days
Fuel Prices Reach Record High after 3rd Hike in 3 Days
PTI - 12 May 2021

Petrol and diesel prices were raised by 25 paise per litre on Wednesday, the third rise this week, pushing the price of petrol above Rs 100 per litre in more markets, including Bhopal and Indore. Petrol and diesel prices have reached new highs across the country, according to price notifications from state-owned fuel retailers.

Petrol now costs Rs 92.05 per litre in Delhi, while diesel costs Rs 82.61. This was the third price hike this week, and the seventh since May 4, when state-owned oil companies ended an 18-year pause in rate revisions caused by assembly elections in states like West Bengal. As a result of the price hike, petrol prices have now surpassed Rs 100 per litre in more places in Rajasthan, Madhya Pradesh, and Maharashtra.

Local taxes such as value-added tax (VAT) and freight charges affect fuel prices, which vary from state to state. Rajasthan has the country's highest petrol VAT, led by Madhya Pradesh. Bhopal made history on Wednesday by becoming the first state capital in the country to see petrol surpass the Rs 100 mark. In the capital, a litre of petrol now costs Rs 100.08. Petrol was priced at Rs 100.16 per litre in Indore.

The most expensive petrol and diesel in the country were found in the Sri Ganganagar district of Rajasthan, at Rs 102.96 per litre and Rs 95.33 per litre, respectively. Petrol prices have risen by Rs 1.66 per litre in seven rises, while diesel prices have risen by Rs 1.88 per litre.

Since March last year, when the government raised excise duty on fuel to an all-time high, petrol price has increased by a record Rs 22.46 per litre (after accounting for a handful of occasions when rates fell) and diesel by Rs 20.32.

Oil firms, which had hit a pause button after reducing prices slightly on April 15, had resorted to an unexplained rate revision freeze in recent months. This occurred at a time when campaigning for new governments in five states, including West Bengal, was at its peak.

Oil firms announced an imminent rise in retail prices as soon as the vote was completed, citing the firming trend in international oil markets. According to them, prices have been steadily rising since April 27.

Central and state taxes make up for 60 per cent of the retail selling price of petrol and over 54 per cent of diesel. The union government levies Rs 32.90 per litre of excise duty on petrol and Rs 31.80 on diesel.

In Mumbai, the petrol price was hiked to Rs 98.36 a litre on Wednesday from Rs 98.12, while diesel rates were increased to Rs 89.75 from Rs 89.48, the price notification showed.