Fuel prices have been hiked for the 14th consecutive day on Saturday as petrol prices in Delhi went up by Rs 0.51 per litre, whereas diesel prices in the national capital went up by Rs 0.61 per litre. In 14 hikes, the petrol prices have gone up by Rs 7.62 per litre and diesel prices ticked by Rs 8.38 per litre.
With the latest increase, petrol prices in Delhi have reached Rs 78.88 per litre from Rs 78.38 per litre, while diesel prices have reached Rs 77.67 per litre from Rs 77.06 per litre. In the financial capital of India, Mumbai, petrol has crossed the Rs 85-mark and is currently retailing at Rs 85.70 per litre, whereas diesel prices have been hiked to Rs 76.25 per litre.
Petrol, diesel prices in top metropolitan cities
Price buildup for petrol and diesel
The base price for petrol is Rs 22.11 per litre in Delhi. After combining Rs 0.33 freight charge per litre, the price charged from dealers adds up to Rs 22.44 per litre. The government charges an excise duty of Rs 32.98 per litre. Add to this the average dealer commission and VAT, the final petrol price in Delhi stands at Rs 78.92 per litre.
Similarly, the base price for diesel stands at Rs 22.93 per litre. After adding freight charges of Rs 0.30 per litre, the price charged from dealers is Rs 23.23 per litre. After combining excise duty, dealer commission and VAT, the final retail price of petrol stands at Rs 77.67 per litre.
Why are fuel prices rising every day?
Petrol and diesel rates have been increased all over India and vary from state to state depending on local taxes and VAT. This is the 14th daily increase in fuel prices since the 82-day hiatus in rate revision ended on June 7. The Central Government imposed a freeze in rates in Mid-March followed by a hike in excise duty on petrol and diesel to sustain additional finances.
Instead of passing the excise duty hikes onto their customers, state-owned PSUs such as Indian Oil Corporation (IOC), Bharat Petroleum Corporation Limited (BPCL), and Hindustan Petroleum Corporation Limited (HPCL) adjusted them against the drop in retail rates which was warranted due to the drastic fall in international oil prices to a two-decade low.
Crude oil price update
Oil prices rose to above $42 a barrel on late Friday night adding to gains in the early Friday trade after Opec producers and allies promised to meet supply cuts and to recover demand hit by the coronavirus pandemic, according to a Reuters report. Brent crude went up by $1 or 2.4 per cent at $42.51 per barrel whereas US West Texas Intermediate (WTI) climbed up by $1.32 or 3.4 per cent to $40.16.
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