Petrol and diesel prices on Sunday, yet again, were revised as the two fuel products saw a hike of 35 paisa and 60 paisa respectively. The price of both the fuels were hiked for the 15th consecutive day. With the new rates coming into effect earlier this morning, the diesel price has hit a new record high, taking the cumulative increase in rates to ₹ 8.88 per litre in just 15 days. Moreover, the cumulative price of petrol stood at ₹ 7.97 a litre. The petrol rates in Delhi were increased to ₹ 79.23 per litre from Rs 78.88, while the diesel prices were hiked to Rs 78.27 a litre from Rs 77.67, as per the price notification received from the state oil marketing companies.
The rates in the petroleum products have been increased throughout the country. The prices vary from state to state which depends on the local sales tax or VAT. Notably, taxes on petrol and diesel comprise of nearly 64 per cent and 63 per cent of the retail selling price. Customers in Mumbai will have to pay ₹ 86.04 for a litre of petrol whereas diesel will cost them ₹ 76.69/litre
Petrol prices are also at a two-year high. Previously, the diesel rates were hiked on October 16, 2018, when prices touched ₹ 75.69 per litre in Delhi, while the highest-ever petrol price was recorded on October 4, 2018 clocking ₹ 84 a litre in the capital city.
The government hiked excise duty on petrol and diesel by Rs 3 per litre each earlier this year in March. The excise duty was again hiked on May 5 by a record ₹ 10 per litre on petrol and ₹ 13 per litre on diesel respectively. These two hikes in excise duty garnered the government with Rs 2 lakh crore as additional tax revenue.
Oil companies such as Indian Oil Corp (IOC), Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL) adjusted the prices instead of passing on the excise duty hikes to customers. The companies took this step as a result of the fall in the retail rates that was warranted because of a decline in international oil prices to two-decade lows.