Gold Silver Reports (GSR) – Petrol, Diesel Prices Touch All Time High — Petrol price on Sunday increased by 33 paisa a litre in Delhi—the highest since the daily price revision came into force in mid-June 2017, and diesel by 26 paisa, according to price notification issued by state-owned oil firms.
Petrol price on Sunday touched a record high of Rs76.24 per litre and diesel climbed to its highest ever level of Rs67.57 as the oil PSUs passed on four weeks of relentless rise in international oil prices to consumers. Rates vary from state to state depending on the incidence of local sales tax or VAT. Prices in Delhi are the cheapest in all metros and most state capitals.
With this increase, petrol has touched an all time-high, breaching the previous high of Rs76.06 touched in Delhi on 14 September, 2013. Diesel rates are also at the all-time high level. This is the seventh straight day of price increase since oil PSUs on 14 May resumed daily price revision after a 19-day pre-Karnataka poll hiatus.
In all, petrol price has been raised by Rs1.61 a litre and diesel by Rs1.64 in last one week. In India, petrol is the costliest in Mumbai where high local taxes has led a price of Rs84.07 per litre. Petrol has breached Rs80 mark in Bhopal (Rs81.83 a litre), Patna (Rs81.73), Hyderabad (Rs80.76) and Srinagar (Rs80.35), according to the price notification.
Petrol in Kolkatta costs Rs78.91 per litre while it is priced at Rs79.13 in Chennai. The cheapest petrol is available in Panjim where a litre comes for Rs70.26.
Diesel is the costliest in Hyderabad were it is priced at Rs73.45 a litre due to high local taxes. It is priced at Rs73.34 in Trivandrum. Other cities where diesel rates have crossed Rs70 mark are Raipur (Rs72.96 a litre), Gandhinagar (Rs72.63), Bhubhaneswar (Rs72.43), Patna (Rs72.24), Jaipur (Rs71.97), Ranchi (Rs71.35), Bhopal (Rs71.12) and Srinagar (Rs70.96). A litre of diesel costs Rs71.94 in Mumbai, Rs70.12 in Kolkatta and Rs71.32 in Chennai, the notification said. Diesel is the cheapest in Port Blair where it is priced at Rs63.35.
On Friday, economic affairs secretary Subhash Chandra Garg refused to say if the government will cut excise duty on auto fuel to ease the burden on consumers. The government is watching the situation developing from oil prices hitting $80 a barrel — the highest since November 2014, and adequate steps will be taken, is all he said without elaborating.
Asked if the government would cut excise duty on petrol and diesel, he had stated that he has nothing to say on that front. “Just watch.”
The BJP-led government had raised excise duty nine times —totalling Rs11.77 per litre on petrol and Rs13.47 on diesel—between November 2014 and January 2016 to shore up finances as global oil prices fell, but then cut the tax just once in October last year by Rs2 a litre.
No sooner had Karnataka polled to elect a new state government, state-owned Indian Oil Corp. (IOC), Hindustan Petroleum Corp. Ltd (HPCL) and Bharat Petroleum Corp. Ltd (BPCL) on Monday ended a hiatus in revising petrol and diesel prices that began on 25 April and reverted to the 11-month old practices of changing rates on a daily basis.
Oil PSUs are estimated to have lost about Rs500 crore on absorbing higher cost resulting from the spike in international oil rates and fall in rupee against the US dollar during the nearly three week hiatus. The benchmark international rate for petrol, used for revising rate on 24 April, had gone up from $78.84 per barrel to $84.97 on 14 May. It has further risen to $ 84.97, indicating more daily hikes would be needed to level retail price with cost.
Similarly, benchmark international diesel rates during this period have climbed from $84.68 per barrel to $90.28 pr barrel. Also, the rupee has weakened to Rs67.27 per US dollar from Rs66.62, making imports costlier. – Neal Bhai Reports
