Petrol prices in Ganganagar city of Rajasthan surged to the highest in India at Rs 97.72 per litre on Tuesday. The city had reported highest petrol price per litre of Rs 98.33 on January 27. Diesel price in Ganganagar stands at Rs 89.40 per litre, which is also the highest across the country.
Fuel prices were increased after three days of hiatus on Tuesday. Petrol and diesel prices in the national capital are also at their all-times highs at Rs 87.30 per litre and Rs 77.48 per litre, respectively. Petrol in the country's financial capital Mumbai is being sold at Rs 93.83per litre, while diesel costs Rs 84.36.
Petrol and diesel prices are scaling up since January 6 -- breaking all previous records. Overall, petrol has risen by Rs 3.59 per litre and diesel by Rs 3.61 in 2021 alone. The retail fuel prices rose after a hike in Brent crude oil prices, which surged above $60 per barrel on improving demand outlook for the first time in more than a year on Monday.
Mukesh Kumar Surana, head of India's third-largest fuel retailer Hindustan Petroleum Corporation Ltd (HPCL), was quoted by news agency PTI as saying that the rise in domestic retail price was due to a sudden spike in crude oil prices. The crude oil prices saw a sudden surge on perception of mismatch in demand and supply as well as a cut in production by Saudi Arabia.
As per the latest price build-up by India's largest fuel retailer Indian Oil, the base price for petrol in Delhi is Rs 29.34 per litre while it's Rs 30.55 per litre for diesel. The Centre charges Rs 32.98 per litre excise duty on petrol and Rs 31.83 per litre on diesel in Delhi. VAT or state tax contributes to Rs 19.92 per litre for petrol and Rs 11.22 for diesel. Add to that freight, dealer commission, the entire amount in duty, commission and VAT amount to Rs 45.59 per litre for petrol and Rs 34.37 a litre for diesel in Delhi.
State-run oil marketing companies (OMCs) revise petrol and diesel prices daily based on international oil prices and foreign exchange rates.