State-owned oil marketing companies (OMCs) have increased the price of petrol and diesel for the ninth consecutive day on Monday, making the price of sensitive petroleum products highest since October 2018, when crude oil prices were at record high.
The price of petrol was hiked by 46 paise a litre while that of diesel by 59 paise a litre today.
With the latest price revision, a liter of petrol now costs ₹76.26 in Delhi, ₹83.17 in Mumbai, ₹79.76 in Chennai and ₹78.10 in Kolkata. Similarly, a litre of diesel now costs ₹74.62 in Delhi, ₹73.21 in Mumbai, ₹72.69 in Chennai and ₹70.33 in Kolkata.
Since June 7, when oil firms resumed daily revision of fuel prices following an 82-day-long break during lockdown, petrol price has gone up by ₹4.98 a litre and diesel price is up by ₹5.23 a litre.
As around 70% of the retail price of fuel comprises taxes (excise duties, VAT, cess, etc), in India, the current spike in auto fuel rates can be attributed to the excise duty hike of ₹10 per litre on petrol and ₹13 per litre on diesel last month.
Besides, several state governments had also hiked VAT or cess on fuel but its impact was immediately passed on to customers.
OMCs, 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 international oil prices falling to two-decade lows.
According to OMCs, the base price of petrol charged to dealers as on June 1 is ₹18.28 a litre including freight charges. The price becomes expansive with ₹32.98 of excise duty, ₹16.44 charged as VAT and ₹3.56 a litre of dealers’ commission.
Similarly, the base price of diesel charged to dealers as on June 1 is ₹18.78 a litre including freight charges. The retail price goes up with ₹31.83 of excise duty, ₹16.26 of VAT and ₹2.52 a litre charged as dealers’ commission.