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15th daily increase in rates
since oil companies restarted revising prices on June 7 in line with costs
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New Delhi(Agencies): Diesel
price on Sunday hit a fresh record high after rates were hiked by 60 paise per
litre while petrol price was up 35 paise, taking the cumulative increase in
rates in 15 days to Rs 8.88 a litre and Rs 7.97 respectively.
Petrol price in Delhi was
hiked to Rs 79.23 per litre from Rs 78.88, while diesel rates were increased to
Rs 78.27 a litre from Rs 77.67, according to a price notification of state oil
marketing companies.
Rates have been increased
across the country and vary from state to state depending on the incidence of
local sales tax or VAT.
Taxes make up for nearly
two-thirds of the retail selling price. As much as Rs 50.69 per litre, or 64
per cent, in petrol price is due to taxes—Rs 32.98 is the central excise duty
and Rs 17.71 is local sales tax or VAT.
Over 63 per cent of the retail
selling price of diesel is taxes. Out of the total tax incidence of Rs 49.43
per litre, Rs 31.83 is by way of central excise and Rs 17.60 is VAT.
Petrol in Mumbai costs Rs
86.04 per litre and diesel is priced at Rs 76.69.
The 15th daily increase in
rates since oil companies restarted revising prices on June 7 in line with
costs after ending an 82-day hiatus in rate revision, has taken diesel prices
to fresh highs. Petrol price too is at a two-year high.
Prior to the current rally,
the peak diesel rates had touched was on October 16, 2018 when prices had
climbed to Rs 75.69 per litre in Delhi. The highest-ever petrol price was on
October 4, 2018 when rates soared to Rs 84 a litre in Delhi.
When rates had peaked in
October 2018, the government had cut excise duty on petrol and diesel by Rs
1.50 per litre each. State-owned oil companies were asked to absorb another Re
1 a litre to help cut retail rates by Rs 2.50 a litre.
Oil companies had quickly
recouped the Re 1 and the government in July 2019 raised excise duty by Rs 2 a
litre.
The 82-day freeze in rates
this year was imposed in mid-March soon after the government hiked excise duty
on petrol and diesel to shore up additional finances.
The government on March 14
hiked excise duty on petrol and diesel by Rs 3 per litre each and then again on
May 5 by a record Rs 10 per litre in case of petrol and Rs 13 on diesel. The
two hikes gave the government Rs 2 lakh crore in additional tax revenues.
Oil PSUs Indian Oil Corp
(IOC), Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd
(HPCL), instead of passing on the excise duty hikes to customers, adjusted them
against the fall in the retail rates that was warranted because of a decline in
international oil prices to two-decade lows.
International oil prices have
since rebounded and oil firms are now adjusting retail rates in line with them.
In 15 hikes, petrol price has
gone up by Rs 7.97 per litre and diesel by Rs 8.88 a litre.
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