Petrol, diesel prices touch all-time highs

Petrol, diesel prices touch all-time highs

On Januarey 18, the fuel prices breached their record high with petrol costing Rs 84.95 per litre in Delhi and Rs 91.56 in Mumbai after oil companies hiked the rates by 25 paise per litre.

The Madhya Pradesh government levies 39 per cent VAT on petrol and diesel, and amid the soaring prices, demands have increased that the tax be reduced. The auto fuels had risen sharply by 25 paisa per litre each on Monday and Tuesday before OMCs made a decision to give relief to consumers from frequent price rise for last two days.

The increase in the petrol and diesel prices is the third such revision this week. However, petrol and diesel prices in India are revised based on the 15-day average of global rates. PTI recently reported that the government had raised excise duty on petrol by Rs 13 per litre and that on diesel by Rs 16 a litre in two tranches to mop up gains arising from global crude oil prices falling to a two-decade low.

"When the Congress-UPA government was in power, the price of crude oil was $108 per barrel, but petrol and diesel were at ₹71.51 and ₹57.28 per litre, which have increased to ₹85.70 and ₹75.88 in Delhi today despite the crude oil being far less than half of UPA rates", Mr. Maken said.

Recently, after being on hold for 29 days, oil companies started raising prices. In all prices have gone up by Re 1 per litre this week. He said petrol in Nepal is sold at around Rs 60 a litre, in Sri Lanka at Rs 63 per litre and in Pakistan at Rs 49 a litre (in Indian currency). On January 1, the rate of petrol in Delhi was Rs 83.71 per litre, now it has been Rs 85.70 per litre.

Prices of fuel in other parts of MP are also touching new highs.

Diesel rate climbed to Rs 75.63 a litre in the National Capital - its highest ever.

Global oil prices are above $55 per barrel now. Union minister for petroleum and natural gas Dharmendra Pradhan blamed the price rise on Saudi Arabia's oil output cut.

This sudden surge in prices hasn't been witnessed in the country since October 4, 2018, when crude prices had shot up to $80 a barrel. "This is the increase in excise duty on diesel and petrol because of which the burden has fallen on the common consumer", he said.

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