Today, Petrol and diesel rates were increased for the fourth time this week, and thus achieved its new all time high.
According to a price notification released from oil marketing companies, petrol and diesel prices were hiked by 25 paise per litre each making petrol price in Delhi Rs 85.70 per litre and in Mumbai Rs 92.28. Diesel prices in Delhi and Mumbai are Rs 75.88 and Rs 82.66 per litre, respectively.
This is the second consecutive day of rate increase and the fourth this week. In all prices have gone up by Rs 1 per litre this week.
Fuel prices vary from state to state depending on local sales tax or VAT, the prices are at record high in the country, prompting cries for a cut in excise duty to ease the burden on consumers.
This week, Dharmendra Pradhan oil minister, blamed the Saudi oil output cut for the surge in oil prices but remained non-committal on tax cuts.
Top oil explorer Saudi Arabia has pledged additional voluntary output cuts of 1 million barrels per day in February and March, which has led to increased prices since the pandemic broke out.
State owned fuel retailers Indian Oil Corporation Ltd (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) on January 6 resumed daily price revision after nearly a month long hiatus. Since then, rates have gone up by Rs 1.99 a litre on petrol and Rs 2.01 in case of diesel.
The international oil prices firmed up on hopes of demand returning from the rollout of COVID-19 vaccines in different countries, including India.
The last touched record high was on October 4, 2018. At that time the government had cut excise duty on petrol and diesel by Rs 1.50 per litre in a bid to ease inflationary pressure and boost consumer confidence. Alongside, state owned fuel retailers cut prices by another Rs 1 per litre, which they recouped later. This time, there are no indications of a duty cut so far.
Petrol and diesel prices are revised on a daily basis in line with benchmark international price and foreign exchange rates.