The 33rd price hike in about two months has made petrol costlier by ₹8.76 per liter since May 4, a day after the results of five assembly polls was declared
State-run fuel retailers on Friday raised Petrol prices by 35 paise per liter after a two-day gap, but spared a rise in diesel prices, decoupling the synchronous rate movements of the two fuels for the first time in the last 60 days.
The 33rd price hike in about two months made gasoline more expensive by 8.76 yen per liter since May 4, a day after the results of five polls were announced. Although diesel prices remained unchanged on Friday, they increased by 8.45 yen per liter on the previous 32 tours.
With the latest hike, Petrol prices in Delhi and Kolkata have approached the 100 yen mark. Gasoline in Delhi is priced at 99.16 per liter and 99.04 in Calcutta. While the fuel prices in Delhi are the benchmark for the whole country, the retail prices of the two fuels differ from place to place due to variations in state taxes and local levies.
Petrol, however, crossed the 100 yen mark for the first time in Chennai and is currently selling for 100.13 yen per liter in the southern city. Petrol costs 105.24 per liter in Mumbai and 102.48 in Bangalore. The highest fuel rates were seen in Ganganagar in Rajasthan, where the new gasoline rate is ₹ 110.40 per liter, while diesel is sold at 102.42 per liter.
The one-way upward movement Since May 4, Petrol has already crossed the 100 yen mark in various cities across the country, especially in the states and UTs of Maharashtra, Rajasthan, Andhra Pradesh, Madhya Pradesh, from Karnataka, Telangana, Odisha, Manipur, Jammu and Kashmir, Laddakh, Punjab, Bihar, Kerala, Tamil Nadu, and West Bengal.
Some of the cities selling gasoline for over 100 per liter are Mumbai, Ratnagiri, Parbhani, Aurangabad, Jaisalmer, Ganganagar, Banswara, Indore, Bhopal, Gwalior, Guntur, Kakinada, Chikmagalur, Shivamogga, Hyderabad, Leh, Imphal, Kalahandi , Sopore, Baramulla, Patna, Salem, Thiruvananthapuram, Mohali and Darjeeling.
Soaring international oil rates and the exorbitant domestic tax structure are two main reasons for the high rates of gasoline and diesel at the pumps. National fuel retailers are aligning gasoline and diesel pump prices with yesterday’s respective international benchmarks, which often move in tandem with crude oil rates.
The rise in international oil prices continued on Friday after the producer cartel – the Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia (together known as OPEC +) – decided Thursday to restore lower than expected supply, even as global demand for oil is growing.
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Benchmark Brent, which jumped 1.6% to $ 75.84 a barrel Thursday, traded 0.09% to $ 75.91 on Friday morning, its highest level since October 2018.
In Delhi, central levies account for 34.03% of the price of gasoline and state taxes 23.08%, according to official data as of June 16. On diesel, central taxes exceed 36.38% while state taxes are around 14.63%. Until 2020, as world crude prices fell, the central government increased excise taxes on fuel to consolidate its finances. States have also followed suit – with revenues affected as a result of the pandemic.
Even though international oil prices have been volatile since May 4, India’s auto fuel pumping rates have only moved upward. For example, although Brent crude dipped to $ 65.11 on May 20, the lowest of those 46 days; Gasoline and diesel prices increased the next day by 19 paise per liter and 29 paise per liter, respectively.
According to executives working at state-run oil marketing companies, prices at the pump are also high because companies were recouping their past revenue losses like the one suffered for 66 days since Feb. 27, when the rates n ‘were not increased due to assembly elections in four states and one Union. territory.
During the 66-day hiatus on tariff hikes, state-run retailers also slashed politically sensitive gasoline and diesel prices by 77 paise and 74 paise per liter, respectively in four small steps. But, all gains for consumers were quickly reversed in the first four consecutive rounds of rate hikes starting May 4.
The government deregulated the prices of gasoline on June 26, 2010 and diesel on October 19, 2014. As a result, state-run retailers are free to change prices at the pump every day. Public sector retailers – IOC, Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) – control nearly 90% of the domestic fuel retail market.