The state-owned oil marketing companies (OMCs) has raised petrol and diesel prices on Tuesday amid the deepening Covid-19 cases. After the current price hike, petrol and diesel in the national capital will cost Rs 90.55 per litre and Rs 80.91 per litre respectively.
In Delhi, petrol price has been hiked by 15 paise per litre while diesel price was raised by 18 paise per litre, according to the Indian Oil Corporation. In Mumbai, the revised prices of petrol and diesel are Rs 96.95 per litre and Rs 87.98 per litre respectively, according to the state-run oil refiner. Presently, fuel prices are the highest in Mumbai among the four metro cities. Petrol and diesel prices vary across states in India due to the value-added tax.
The current price hike has come after the assembly election results have been declared in West Bengal, Assam, Kerala, Tamil Nadu, and Puducherry on Sunday. Earlier, the fuel price were raised on April 15 when petrol prices had come down by 16 paise and diesel by 14 paise, as per the Economic Times report.
It is to be noted that petrol and diesel prices are fixed on the basis of freight charges, local taxes, and VAT. Petrol and diesel prices vary from state to state due to taxations imposed by central and state governments.
The central and state taxes comprise of 60 per cent of the retail selling price of petrol while more than 54 per cent for diesel. Centre levies Rs 32.90 per litre of excise duty on petrol and Rs 31.80 a litre on diesel.
The cost of the Indian basket of crude, consisting of Oman, Dubai and Brent crude, was at $65.71 a barrel on 3 May. In the wake of the pandemic crude prices for the Indian basket of crude had slide to $19.90 in April last year before recovering to $63.40 a barrel in April, as per the data from the Petroleum Planning and Analysis Cell.
City Petrol Diesel
Mumbai 96.95 87.98
Delhi 90.55 80.91
Chennai 92.55 85.90
Kolkata 90.76 83.78
Source: Indian Oil