Petrol-Diesel / Fuel prices hit record high, petrol nears ₹102 per litre in Mumbai

New Delhi: Petrol price on Wednesday (June 9) was hiked by 23-25 paise per litre and diesel by 23-27 paise a litre, the 22nd hike in rates since May 4, when state-run oil marketing companies (OMCs) ended an 18-day pause in rate revision they observed during assembly elections. It is worth noting that a rally in international oil prices touching a high of $71 a barrel took pump prices in India to new highs.

After today’s hike, petrol prices in Delhi climbed to Rs 95.56 (25 paise increase) a litre as against Rs 95.31 on Tuesday while diesel price soared to Rs 86.47 per litre as compared to Rs 86.22 a litre on Tuesday, as per data from Indian Oil Corporation website. So far this month, the retail prices of petrol have gone up by about Rs 1.07 a litre while the price of diesel rose by Rs 1.09  paise per litre in the national capital. On Tuesday, OMCs kept auto fuel rates static after two consecutive days of the increase.

Latest rates in top cities

Citizens in Kolkata have to shell out Rs 95.52 for a litre of petrol after a 24 paise rise over Tuesday’s rate. A litre of diesel costs Rs 89.32, 25 paise more than yesterday’s price of Rs 89.07 a litre. Likewise, in Chennai, the retail price of petrol price was increased by 23 paise to Rs 96.94 a litre, from Rs 96.71 recorded on Tuesday. Diesel costs Rs 91.15 a litre, 23 paise more than Tuesday’s price.

In Mumbai, petrol is retailing at Rs 101.76 per litre, the highest price till date, against Rs 101.52 on Tuesday. Motorists in Mumbai have to pay Rs 93.85 for a litre of diesel after a 27 paise increase over Tuesday’s price. Sri Ganganagar district of Rajasthan has the costliest petrol and diesel in the country at Rs 106.64 per litre and Rs 99.50 a litre respectively.

Taxes on auto fuels

As per dynamic pricing, OMCs revise the pump prices of transportation fuels on a daily basis. Also, auto fuel prices are dependent on Brent crude oil rates as India imports around 85 per cent of its fuel requirements. The pump price of petrol and diesel vary from state to state depending on the incidence of local taxes such as VAT (value-added tax) and freight charges. Central and state taxes make up for over 61 per cent of the retail price of petrol and about 56 per cent of diesel. The Union government levies Rs 32.9 per litre of excise duty on petrol and Rs 31.80 a litre on diesel.

Meanwhile, Union Petroleum and Natural Gas Minister Dharmendra Pradhan has blamed the recent surge in global crude oil prices for the fuel price hike in India. The minister was of the opinion that petrol and diesel should be brought under the GST (goods and services tax) regime.

ET NOW's Deputy Bureau Chief Ruchi Bhatia on Tuesday reported that the government’s unwillingness towards reducing fuel prices stems from the fact that a rupee cut would mean a revenue loss of approximately Rs 14,000 crore in a fiscal year and the Centre will have to slash more than a rupee to have a meaningful impact on the common man’s pocket. 

More importantly, higher spending on Covid-19 vaccines, additional welfare expenditure to ease the pain of the poorest, cushion to brave the third wave, and lower fiscal room are main reasons that the Centre does not favour cutting excise duty on fuel at this juncture.