New Delhi: As Finance Minister Nirmala Sitharaman proposed farm cess of Rs 2.5 per litre on petrol, Rs 4 on diesel, fuel are set to get expensive. This comes as petrol and diesel rates are already touching a new high every day. Also Read – Budget 2021: Rs 75,000 Crore Allocated For Farmers | A Quick Recap of PM Kisan Samman Nidhi Yojana
In Delhi, petrol was priced at Rs 86.30 per litre. In Mumbai, Chennai and Kolkata, petrol was sold for Rs 92.86, Rs 88.82 and Rs 87.69 per litre. Diesel in Delhi, Mumbai, Chennai and Kolkata was retailing at Rs 76.48, Rs 83.30, Rs 81.71 and Rs 80.08 per litre, respectively. Also Read – Budget 2021: Allocation For Rural Infrastructure Hiked to Rs 40,000 Crore From Rs 30,000 Crore
Though firm global crude and product price is the reason for the increase in retail price of petrol and diesel, it is interesting to note that even though crude has been hovering just over $55 a barrel for some time now, OMCs have gone in for both a pause in price of auto fuels as well increase in its retail prices on consecutive days. Also Read – Budget 2021: FM Sitharaman Announces Voluntary Vehicle Scrapping Policy to Phase Out Old Vehicles
Crude prices have remained firm for the last few weeks in wake of unilateral production cuts announced by Saudi Arabia and a pick-up in consumption in all major economies globally.
The petrol and diesel prices have increased 10 times in January with both auto fuels increasing by Rs 2.59 and Rs 2.61 per litre respectively during the month.
The last few increases in pump prices in petrol and diesel has taken its price to record levels across the country in all major metro cities and other towns. The last time the retail price of auto fuels were closer to current levels was on October 4, 2018 when crude prices had shot up to $80 a barrel.
The current price rise is largely on account of steep increase in central taxes of petrol and diesel and firm crude prices.
According to oil companies executives, petrol and diesel prices may increase further in coming days as retail prices may have to be balanced in line with global developments to prevent OMCs from making losses on sale of auto fuels.
(With IANS Inputs)
