Highest-ever price reached with diesel being hiked by 30 paise and petrol by 27 paise on Tuesday
Petrol and diesel prices were raised for the sixth time this month on Tuesday, pushing prices above Rs 100 per litre in places ranging from Maharashtra's Nanded to Madhya Pradesh's Rewa to Rajasthan's Jaisalmer. According to a price notification by state-owned fuel retailers, the price of petrol has increased by 27 paise per litre and the price of diesel has increased by 30 paise per litre.
Petrol and diesel prices in the United States have reached an all-time high as a result of the rise. Petrol now costs Rs 91.80 per litre in Delhi, while diesel costs Rs 82.36. This was the sixth price hike since May 4, when state-owned oil companies resumed rate revisions after an 18-day pause caused by the assembly election in states like West Bengal. The price increase led to petrol rates crossing the Rs 100-mark in more places of Rajasthan, Madhya Pradesh and Maharashtra.
The impact of local taxes such as VAT and freight charges on fuel prices varies from state to state. Rajasthan, followed by Madhya Pradesh, has the highest value-added tax (VAT) on petrol in the world. The most expensive petrol and diesel in the country were found in the Sri Ganganagar district of Rajasthan, at Rs 102.70 per litre and Rs 95.06 per litre, respectively. Also in Rajasthan, petrol prices surpassed Rs 100 in Jaisalmer (Rs 100.71) and Bikaner (Rs 100.70), though it came close in Barmer (Rs 100.70). (Rs 99.82).
Petrol prices in Madhya Pradesh have surpassed the physiological mark in many districts, including Shahdol (Rs 102.06), Rewa (Rs 102.04), Chhindwara (Rs 101.67), and Balaghat (Rs 101.98). It neared that mark in Indore (Rs 99.90 a litre) and Bhopal (Rs 99.83). If rates continue to rise, Bhopal will be the first state capital to see petrol at Rs 100. In the Nanded district of Maharashtra, petrol was being sold at Rs 100.30. In six increases, petrol price has risen by Rs 1.41 per litre and diesel by Rs 1.63.
After raising petrol price by a record Rs 21.58 per litre and diesel by Rs 19.18 since the government raised excise duty to an all-time high in March last year, state-owned fuel retailers, IOC, BPCL and HPCL had reduced petrol price by 67 paise a litre and diesel by 74 paise per litre effected between March 24 and April 15. Oil companies, which have in recent months resorted to an unexplained freeze in rate revision, had hit a pause button after cutting prices marginally on April 15. This coincided with electioneering hitting a peak to elect new governments in five states including West Bengal.
No sooner had voting ended, oil companies indicated an impending increase in retail prices in view of firming trends in international oil markets. They said prices have been on a continuous uptrend 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 98.12 a litre on Tuesday from Rs 97.86, while diesel rates were increased to Rs 89.48 from Rs 89.17, the price notification showed.