Petrol, diesel prices reach record highs

Oil marketing companies hiked petrol and diesel prices yet again on Friday, this time by a steep 29 paise per litre for petrol and 34 paise per litre for diesel. This latest hike, the fourth such increase this week, brings the total increase in petrol and diesel prices after the end of state assembly elections to Rs 1.95 per litre and Rs 2.22 per litre respectively.

In Delhi, the hike has brought fuel prices to yet another all-time high of Rs 92.34 per litre for petrol and Rs 82.95 per litre for diesel. As for states where the incidence of Value Added Taxes (VAT) on fuel is higher, prices have already crossed the psychological Rs 100 per litre mark-such as in Madhya Pradesh, Rajasthan, and Maharashtra.

The Sri Ganganagar district of Rajasthan saw the costliest petrol and diesel prices in the country at Rs 103.27 per litre and Rs 95.70 a litre respectively. In Mumbai, petrol costs Rs 98.65 per litre and diesel Rs 90.11 per litre. Indians are among the most highly taxed consumers of auto fuels in the world, with central and state taxes making up 60 per cent of the retail selling price of petrol and over 54 per cent of diesel.

After the massive excise duty hikes effected last summer, the Centre levies Rs 32.90 per litre of excise duty on petrol and Rs 31.80 on diesel. While crude oil prices have fallen over the past few days due to concerns arising from the high number of Covid-19 cases, the general trend over the past few months has been upward. Rise in crude in the run-up to the recent polls had been pinching OMC margins.