Petrol, diesel prices at fresh highs; petrol crosses Rs 87 mark in Delhi

By: |
February 9, 2021 11:12 AM

Petrol and diesel prices were hiked by 35 paise per litre each, according to price notifications of state-owned fuel retailers.

petrol price, petrolprice in delhiAs a result of the hike in excise duties on petrol and diesel, the share of all oil duties rose from 10.1% of all central government tax collections—including income and corporate taxes--in FY15 to 14.3% in FY20.

Petrol and diesel prices on Tuesday climbed to fresh highs in the country as rates were hiked after a three-day hiatus. Petrol and diesel prices were hiked by 35 paise per litre each, according to price notifications of state-owned fuel retailers.

The increase took petrol prices to a fresh high of Rs 87.30 a litre in Delhi and to Rs 93.83 in Mumbai. Diesel rates rose to Rs 77.48 per litre in the national capital and to an all-time high of Rs 84.36 in Mumbai. Prices were last hiked by 30 paise on February 5.

Rates have risen by Rs 3.59 per litre in case of petrol and by Rs 3.61 on diesel in 2021. Brent crude oil price on Monday rose above USD 60 per barrel for the first time in more than a year on improving demand outlook amid the global rollout of COVID-19 vaccines.

Last week, Mukesh Kumar Surana, head of India’s third-largest fuel retailer Hindustan Petroleum Corporation Ltd (HPCL), said that a sudden spike in international oil prices because of a perception of mismatch in demand and supply as well as a cut in production by Saudi was fuelling the retail price hikes.

He had said that only 25-30 per cent of the retail pump rates are dependent on cost and the rest are central and state taxes.

“We probably have no choice but to pass on the variation (in benchmark cost) to the consumer,” he had said. “The government has taxation handle.”

Also last week, Oil Minister Dharmendra Pradhan told the Rajya Sabha in a written reply to a question that excise duty levied by the central government makes up for Rs 32.98 per litre of the price of petrol in Delhi and sales tax or VAT of the state government constitutes Rs 19.55.

For diesel, the central excise adds up to Rs 31.83 and VAT to Rs 10.99, he had said.

Besides, the price includes a dealer commission of a minimum Rs 2.6 per litre on petrol and Rs 2 on diesel.

Retail petrol rates have risen by Rs 17.71 per litre since mid-March 2020 after the government raised taxes by a record margin to mop up gains arising from fall in international oil prices. Diesel rates have gone up by Rs 15.19.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1India asks OPEC+ to fulfill promise of stable oil prices
2Petrol price can be cut to Rs 75 a litre under GST, but there’s no political will: SBI Economists
3Gold prices fall below Rs 45,000 as US bond yields rise; down 11% so far in 2021; time to buy, sell or hold?