homeeconomy News

Petrol, diesel prices scale new highs; here's why fuel rates are on the rise

Petrol, diesel prices scale new highs; here's why fuel rates are on the rise

Petrol, diesel prices scale new highs; here's why fuel rates are on the rise
Profile image

By Anshul  Jan 14, 2021 3:18:18 PM IST (Updated)

Petrol price on Thursday scaled to an all-time high in Delhi after state-owned fuel retailers hiked rates for the second consecutive day.

Petrol price on Thursday scaled to an all-time high in Delhi after state-owned fuel retailers hiked rates for the second consecutive day. One litre of petrol in Delhi now costs Rs 84.70, as against Wednesday’s rate of Rs 84.45. This rate is just a shy away from the highest ever rate of Rs 91.34 in Mumbai. Meanwhile, diesel price in Mumbai is at an all-time high of Rs 81.60 per litre, according to the Indian Oil Corporation data.

Recommended Articles

View All

In the national capital, the price of diesel on Thursday stands at Rs 74.88 per litre, as against Wednesday’s rate of 78.63.
Petrol prices in Kolkata and Chennai stand at Rs 86.15 per litre and Rs 87.40 per litre respectively, while diesel rates stand at Rs 78.47 a litre in Kolkata and Rs 80.19 a litre in Chennai.
These higher fuel prices come in the backdrop of rising global crude oil prices and high excise duty, experts say.
State-owned fuel retailers had on January 6, resumed daily price revision after nearly a month-long hiatus. Rates were hiked on two consecutive days—totalling 49 paise for petrol and 51 paise for diesel—before they hit a pause button again.
The price increase cycle resumed on Wednesday, after international oil prices rose to their highest level since February 2020, before the coronavirus outbreak in China began spreading across the world, forcing lockdowns that shaved off demand. Rates, however, eased a bit on Thursday with Brent down 11 cents to $55.95 per barrel while NYMEX light sweet crude was down 10 cents at $52.81.
Meanwhile, the government hiked excise duty twice in 2020, followed by a hike in state levies which are pinching the consumers. Petrol saw a hike of 65 percent and diesel 101 percent on account of excise duty increase in 2020.
The highest ever rate of diesel in Delhi was touched on October 4, 2018, when it touched Rs 75.45 a litre mark. On that day petrol was priced at Rs 84. In Mumbai, the highest level for petrol was also on the same day when it scaled to Rs 91.34. The government had responded to the situation in October 2018, by cutting excise duty on petrol and diesel by Rs 1.50 per litre in a bid to ease inflationary pressure and boost consumer confidence. Alongside, state-owned fuel retailers cut prices by another Re 1 a litre, which they recouped later.
—With inputs from PTI
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!

Top Budget Opinions

    Most Read

    Market Movers

    View All
    Top GainersTop Losers
    CurrencyCommodities
    CompanyPriceChng%Chng