Rising Petrol Price in India Burn Holes in Pockets of Consumers

  • Petrol price had last crossed Rs 80 mark in September 2018. Since then it is the first time to touch Rs 80.
  • It is the first ever situation where diesel rates have surpassed petrol price in Delhi costing Rs 80.40 per litre.
Petrol price crosses ₹80 per litre in Delhi, ₹87 in Mumbai

Petrol and diesel prices in India were revised for the 21st time in a row on Saturday as oil companies are looking forward to regaining the losses incurred during coronavirus induced-lockdown. The fuel price in India is currently at a four-and-a-half month high, even when the crude oil rates have slumped to $40 a barrel in the international market. The question then arises, what is the reason for this shoot in fuel price in India?

Today, the petrol price increased 25 paise per litre and diesel 21 paise per litre in Delhi, costing petrol to be at Rs 80.38 per litre, while diesel will now cost Rs 80.40 per litre.

Also Read: Expect no price cuts with COVID-19 Oil Market Crash

Today’s Petrol Price in Indian Metro Cities & State Capitals

CITYTODAY PRICEYESTERDAY’S PRICE
New Delhi ₹ 80.38₹ 80.13
Kolkata ₹ 82.05₹ 81.82
Mumbai ₹ 87.14₹ 86.91
Chennai ₹ 83.60₹ 83.37
Gurgaon ₹ 78.59₹ 78.09
Noida ₹ 81.04₹ 80.79
Bangalore ₹ 82.99₹ 82.74
Bhubaneswar ₹ 80.99₹ 80.71
Chandigarh ₹ 77.36₹ 77.12
Hyderabad ₹ 83.44₹ 83.18
Jaipur ₹ 87.91₹ 87.29
Lucknow ₹ 80.84₹ 80.75
Patna₹ 83.33₹ 83.08
Trivandrum ₹ 82.10₹ 81.85

Why is Delhi charging the highest diesel price?

The Delhi Govt. has raised Value Added Tax (VAT) on petrol and diesel to 30 percent of the price. The duty levied on petrol is Rs 32.98 a litre, while on diesel it is Rs 31.83 per litre. The government is expected to gain nearly Rs 1.6 lakh crore in additional revenues from these excise duty hikes.

Petrol price in India have continuously risen from past days, but the final retailing price differs from state to state as it depends upon incidence of local sales tax and VAT. The Delhi government had on May 5, 2020 hiked VAT on diesel from 16.75 per cent to 30 per cent and on petrol from 27 percent to 30 per cent. Also, the dealer commission stands at Rs 3.57 a litre, while on diesel it is Rs 2.51.

Last 10 Days Diesel Rate in New Delhi

DATEPRICEPRICE CHANGE
Jun 26, 2020₹ 80.19₹ 0.17
Jun 25, 2020₹ 80.02₹ 0.14
Jun 24, 2020₹ 79.88₹ 0.48
Jun 23, 2020₹ 79.40₹ 0.55
Jun 22, 2020₹ 78.85₹ 0.58
Jun 21, 2020₹ 78.27₹ 0.60
Jun 20, 2020₹ 77.67₹ 0.61
Jun 19, 2020₹ 77.06₹ 0.63
Jun 18, 2020₹ 76.43₹ 0.64
Jun 17, 2020₹ 75.79₹ 0.60

What are the taxes that Indians pay per litre?

Taxes make up for nearly two-thirds of the retail selling price of petrol and diesel in India. As much as Rs 50.69 per litre, or 64 per cent, in petrol price is due to taxes.

  • Excise duty(Central Govt): On petrol, the duty levied is Rs 32.98 per litre, while on diesel it is Rs 31.83 per litre.
  • VAT (State Govt): This varies from state to state. The states which levy the highest VAT in India are Madhya Pradesh, Kerala, Rajasthan, and Karnataka that are levying over 30 per cent VAT.
  • Dealer commission: This is different for petrol and diesel and varies a little with the location of the fuel station, ranging from Rs 2-4/litre.

Who is responsible for the hike in fuel price?

In the month of May when India was going through its 3rd phase of lockdown, The Central Government hiked the excise duty Rs 10 per litre on petrol and Rs 13 per litre on diesel According to the government notification, of the Rs 10 per litre increase in duty on petrol, Rs 8 will be road and infrastructure cess, while Rs 2 will account for special additional excise duty. Similarly, for Rs 13 per litre duty increase in diesel, Rs 8 will be road and infrastructure cess, while Rs 5 will account for special additional excise duty. Since it was a time with rare economic activities (because of lockdown) and nil demand for petrol, the impact of hike in excise duties did not pass on to the consumers.

However now, when India has entered the phase of Unlock 1.0, the impact is directly absorbed the consumers. The demand for both petrol and diesel has risen with ease in lockdown restrictions, and the government that earlier stood strong opposing such fuel price hikes, is now sitting silent.

The govt-braced celebrities that took to twitter to express their concern over rising petrol price in India earlier couldn’t express their concerns in current times. Many of them have reportedly deleted their earlier tweets.

Maharashtra Cabinet Minister Dr. Jitendra Awhad took a jibe at Akshay Kumar and also questioned Amitabh Bachhan, “Have u not refilled Ur fuel on petrol pump or u dnt look at the bill @SrBachchan…It’s time for u to speak hope u r not biased…The price of diesel petrol has reached peak ab Mumbaikar kya kare car jalaye ya car chalaye”.

One thought on “Rising Petrol Price in India Burn Holes in Pockets of Consumers

  • June 27, 2020 at 5:08 pm
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    When you can’t handle the rising cases of COVID-19, you rise the fuel prices so that people don’t go out. Modern problem require modern solution

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