Petrol price was increased by 33 paise a litre in India’s capital city Delhi — the highest since the daily price revision came into force in mid-June 2017, and diesel by 26 paise, according to price notification issued by state-owned oil firms
With this increase, petrol has touched an all-time-high, breaching the previous high of Rs 76.06 touched in Delhi on 14 September 2013. Diesel rates are also at the all-time high level.
The BJP-led government had raised excise duty nine times — totalling Rs 11.77 per litre on petrol and Rs 13.47 on diesel — between November 2014 and January 2016 to shore up finances as global oil prices fell, but then cut the tax just once in October last year by Rs 2 a litre.
The benchmark international rate for petrol, used for revising rate on 24 April, had gone up from $78.84 per barrel to $84.97 on 14 May. It has further risen to $84.97, indicating more daily hikes would be needed to level retail price with cost.
Similarly, benchmark international diesel rates during this period have climbed from $84.68 per barrel to $90.28 per barrel. Also, the rupee has weakened to Rs 67.27 per US dollar from Rs 66.62, making imports costlier.