Diesel Price Today: Petrol prices up by Rs 34, diesel Rs 29.5 in two years
India has never before seen such steep price hikes. State oil companies have been raising prices almost daily in the past month, the cumulative rise being Rs 5 per litre for petrol and Rs 6 for diesel.
The recent fuel price spiral has been led by a jump in the global crude oil rates. Oil prices have risen by $8 in a month to $84 per barrel. Oil has doubled in a year and is up 40% from the same time two years ago.
Domestic petrol prices are up 32% in a year and 46% in two years while diesel prices are up 35% in a year, and 45% in two years.
Fuel consumers’ problems have been compounded by the government’s refusal to roll back additional taxes it imposed after the oil prices collapsed at the beginning of the pandemic last year. Incremental taxes denied consumers the benefit of low oil prices then but kept domestic fuel prices stable. But as international oil prices started recovering with the reopening of the economies, domestic fuel consumers started feeling the pinch.
Rising petrol and diesel prices: How state-central taxes are hurting the consumer and is there a way out?
Petroleum products’ unprecedented high retail price remains a concern as India recovers from the Covid shock. While international crude oil price today is nearly 50% lower than it was in July 2008, India’s petrol and diesel prices are higher by about 100% and 150%. So is GST the answer to soaring fuel prices? And how far can one blame taxation? ET’s Sachin Dave explains the past, present and future of India’s crude and taxation policy and the way forward. Watch
In Delhi, a consumer pays in taxes Rs 57.24 on a litre of petrol and Rs 45.57 on diesel. Taxes vary with states.
After Friday’s 35 paise/litre hike, petrol is selling for Rs 106.89/litre in Delhi, and Rs 112.8 in Mumbai. Diesel costs Rs 95.6 in Delhi and Rs 103.6 in Mumbai. In Ganganagar, Rajasthan, which has one of the costliest fuels in the country, petrol costs Rs 118.5 and diesel Rs 109.4 per litre.
The current rally in oil prices has been fuelled by a faster-than-expected recovery in demand and slow supply response. OPEC+, a group of nearly two dozen oil-producing countries led by Saudi Arabia and Russia, has kept supplies artificially curbed, resulting in higher prices.