Petrol, diesel prices hit new highs, rise for 9th consecutive day

Adjust Comment Print

The price of petrol increased to a new all-time high of Rs 86.72 per litre in Mumbai on Tuesday, increasing 16 paise from the day before. "This unsuccessful government should take some measures to curb the prices", Vohra said.

Similarly, the price build-up of diesel in Delhi at ₹71.15 a litre includes excise duty of ₹15.33, dealer commission of ₹2.51, and Value-Added Tax of ₹10.46 (including Value-Added Tax on dealer commission). On that day, the rate in Mumbai was Rs 86.24 per litre. The price of the fuel rose by the same amount in Delhi to Rs 79.31, and in Kolkata it costs Rs 82.22 a litre.

The central government had raised excise duty on petrol by Rs 11.77 a litre and that on diesel by 13.47 a litre in nine instalments between November 2014 and January 2016 to shore up finances as global oil prices fell, but then cut the tax just once in October past year by Rs 2 a litre.

Global crude oil price has been on a rise in the last few months and is hovering above $70 per barrel.

Diesel is being sold at Rs 71.15 in Delhi, Rs 74 in Kolkata, Rs 75.54 in Mumbai and Rs 75.19 in Chennai. "I would like to mention two points, and both these subjects are external".

Commenting on the relentless price rise, former finance minister P Chidambaram said: "Relentless rise in prices of petrol and diesel is not inevitable". Due to sanctions on Tehran from the US, India had to reduce its imports from Iran, subsequently reducing the total fuel availability in the country.

The Department of Energy Minister, Jeff Radebe on Monday announced fuel prices will remain unchanged. "This is further hurting Asian currencies", the official said. This came at a time when India's crude oil imports from Iran had increased by 52 percent in June 2018. There is a pressure on oil prices due to a decrease in production.

Moreover, the price of crude oil has risen by $7 a barrel in the past two weeks due to the growing fears that the United States sanctions on Iran might reduce the supplies.