Prices of Petrol and Diesel reach a high with a rise of 35 paise per liter

On 26th January 2021, Petrol and Diesel prices rose by 35 paise. They were unchanged for two days. The cost of petrol has touched a record high of Rs 86.05 per liter in Delhi.

After the 35 paise increase, the price of petrol and diesel stood at Rs 92.62 per liter and Rs 83.03 per liter in Mumbai, respectively. The price of petrol and diesel in Delhi is Rs 86.05 per liter and Rs 83.03 per liter, respectively.

Advertisement

Fuel prices may vary from state to state, this change is owed to the local sales tax or VAT which are now at historic highs in the country. There are pleas to cut the excise duty so the burden on consumers is lessened.

Dharmendra Pradhan, oil minister criticized the Saudi Oil output cut for the hike in oil prices but remained non-committal on tax cuts.

While tap oil explorer Saudi Arabia has promised additional voluntary output slash of 1 million barrels per day in February and March, which has caused price climbing to the maximum since the pandemic began.

State-owned fuel retailers such as Indian Oil Corporation Ltd (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) on 6th January, 2021 recommended daily price revisions after nearly a month long break.

Since then rates have increased by Rs 2.34 per liter on petrol and Rs 2.36 on diesel.

Following international oil prices solidifying in hopes of demand returning from the  launch of COVID-19 vaccines in various countries, including India.

Before the present high crude prices led to price hikes this month. On 4th October,, 2018, fuel prices had peaked – a record high. At that moment, the government had reduced excise duty on petrol and diesel by Rs 1.50 per liter in a bid to ease inflammatory pressure and promote consumer confidence. At the same time, state-owned fuel retailers cut prices by another Re 1 a liter which they recovered later.