Petrol and diesel prices in India have already soared more than the pre-corona levels even as crude prices are $20-25 per barrel less than the pre-corona levels.
Petrol and diesel prices in India are on a continuous rise as crude prices inch towards pre-corona levels. Petrol and diesel prices rose by 60 paise per litre in a fifth straight day increase on Thursday. Petrol price in Delhi surged to Rs 74 per litre from Rs 73.40 while diesel rates hiked to Rs 72.22 a litre from Rs 71.62, according to IOCL. In the five consecutive hikes in fuel price, petrol price has swelled by Rs 2.74 per litre and diesel by Rs 2.83 per litre. What adds to worry is that fuel prices in India have already soared more than the pre-corona levels even as crude prices are $20-25 per barrel less than the pre-corona levels.
Fuel prices are continuously rising but no announcement regarding excise duty cut has been made so far. After increasing excise duty on petrol by Rs 10 per litre and diesel by Rs 13 per litre, the government is collecting around 270 per cent taxes on the base price of petrol and 256 per cent in the case of diesel, said a report by Care Ratings. With the sudden fall in crude oil prices, the government had increased the central excise duty of petrol and diesel twice in the last 3 months but now with the recovery in crude oil prices, the consumers are burdened with high prices not only because of high crude prices but also due to the additional tax which was imposed to take advantage of low crude price.
While increasing the tax on fuel, the government said that the burden of the increased tax will be borne by oil companies, not the consumers but the increasing retail prices indicate towards the other direction. While oil consumers are already struggling with high fuel prices, the effect of weak rupee can further hike the prices. The surge in petrol and diesel prices may get steeper and the prices may further rise by Rs 5-6 per litre in a week as the effect of weak rupee adds up to the woes, Ajay Bansal, president of All India Petroleum Dealers Association, had told Financial Express Online.