Fuel prices in India hit a historical high with the rates shooting up 7 days on the trot. The price of petrol reached a whopping Rs.76.24 per litre, whereas diesel also reached its highest point ever, of Rs. 67.57, in Delhi. Oil companies have passed on the international price increase straight on to the customer. This has left many consumers puzzled and furious as well.
Since the daily price revision has set in from June 2017, petrol saw the highest rise of 33 paisa a litre, in Delhi. At the same time, diesel also saw a high rise of 26 paisa. This is as per the price notification issued by oil firms. Petrol has now touched an all time-high, which is even more than that of Rs 76.06, which was attained in September, 2013. Price of diesel is also at an all-time high.
TPrices have been increasing for 7 days in a row. The prices had been held stable due to the Karnataka polls, earlier. In last one week, the price of petrol has gone up by Rs. 1.61 per litre and diesel by Rs. 1.64, which is substantial.
Petrol happens to be seeing at the highest price in Mumbai where the local taxes are very high. This has resulted in petrol retailing at Rs 84.07 per litre, in the city. In many other cities, petrol has crossed Rs.80 a litre – Bhopal (Rs. 81.83 a litre), Patna (Rs. 81.73), Hyderabad (Rs. 80.76) and Srinagar (Rs. 80.35). In Kolkata the price of petrol has come close to the Rs. 80 at Rs. 78.91 per litre and in Chennai it is Rs.79.13. Petrol remains the cheapest in Panjim, Goa where it costs Rs. 70.26 per litre. This is due to the state government reducing local taxes on fuel.
Hyderabad has seen the highest price of diesel at Rs. 73.45 a litre. In Mumbai, diesel price is Rs. 71.94 , Rs. 70.12 in Kolkata and Rs. 71.32 in Chennai, as per the price notification. Diesel is prices the least in Port Blair and costs Rs 63.35.
Economic Affairs Secretary, Subhash Chandra Garg has refused to say if the government will cut excise duty on auto fuel to ease the burden on consumers. He said, “The government is watching the situation developing from oil prices hitting USD 80 a barrel, the highest since November 2014, and adequate steps will be taken.” There has been no confirmation provided yet of reducing local taxes. Mean while consumers remain burdened and this will put severe pressure on commodity prices.
Between November 2014 and January 2016, the present government has revised excise duty towards the higher side, nine times, which adds up to Rs.11.77 per litre on petrol and Rs.13.47 on diesel. The tax was cur just once in October 2017, by Rs. 2 a litre. Oil PSUs are said to have lost about Rs 500 crore as an estimate due to absorbing higher cost from the rise in international oil prices, coupled with a major fall in the rupee-doolar exchange rates.