ALSO READ | Crude Oil Prices Highest Since March On Hopes Of Early COVID-19 Vaccine; Fuel Prices May Rise Further By Rs 2
On Thursday, the price of petrol in Delhi was Rs 83.71 per litre and diesel was retailing at Rs 73.87 per litre. While in Mumbai, petrol retailed at Rs 90.34 and diesel at Rs 80.51 per litre. In Kolkata, petrol and diesel were sold at Rs 85.19 and 77.44 per litre,
According to reports, the retail fuel prices in the country is highest since October 2018.
Why the oil prices in the country are on the rise?
As most of the fuel oil is imported to meet the demands, oil prices in the country rise in accordance with the global prices. The Oil Marketing Companies (OMCs) revise the price based on changes in the international prices of petrol and diesel.
Recently the price of international crude oil saw a surge with hopes that a Covid-19 vaccine will be soon available in the market and demand for petroleum products will increase.
In the international market, Brent crude oil is retailing at $49 per barrel, which is highest since March earlier this year. Following the lockdown imposed due to the spread of Covid-19 disease the price of crude oil crashed from $66 to $19 per barrel
Why Crude Oil is cheaper as compared to the retail prices of petrol and diesel?
After the crude oil is imported it is processed into regular fuel oils like diesel, petrol and kerosene by oil refineries then transported to fuel stations, plus the refined oil is levied by different central and state government duties.
State and central taxes currently account for around 62 per cent of the retail price of petrol and around 57.5 per cent of the retail price of diesel in Delhi.
The central government has increased the excise duty on petrol to Rs 32.98 per litre from Rs 19.98 and at the beginning of the year and increased the excise duty on diesel to Rs 31.83 per litre from Rs 15.83 over the same period.
When was the last time India witnessed an all-time high in the oil prices?
India in October 2018, recorded an all-time high price of fuel oil in the country when the prices of international crude oil touched $81.03 per barrel.
Following the surge in the price of crude oil, Petrol price had touched a record high of Rs 84 per litre in Delhi and Rs 91.34 in Mumbai on October 4, 2018. Diesel on that day had peaked to Rs 75.45 a litre in Delhi and Rs 80.10 in Mumbai.