Petrol, Diesel Price Today: What is The Reason Behind Fuel Price Hike in India?

Petrol Price, Diesel Price Today: Petrol and diesel price have reached record highs in India with petrol rising another 2 paise, nearly touching Rs 90 per litre in Delhi (Rs 89.54 per litre), while price of diesel breached the Rs 79-mark (Rs 79.95 per litre) on Wednesday. Fuel prices have been incessantly rising for more than a week now with no respite. It must be noted that except for Delhi, petrol prices have crossed the Rs 90-mark in all metro cities. Also Read – Dressed Up Like PM Modi, This Man Went Around on a Bullock Cart Asking People if Fuel Prices Have Come Down

In Mumbai too, petrol price today inched closer to touching a three-digit figure, reaching an all-new high of Rs 95.75 per litre. Meanwhile, diesel in Mumbai costs Rs 86.98 as per this morning. Also Read – Fuel Price Hike: Petrol Inches Towards ₹100 in Mumbai, Prices May go up in Coming Days

Oil marketing companies calculate fuel prices in different states across the country based on differential Value Added Tax (VAT) levied by the state governments. In the last seven days, the price has gone up by Rs 2.31 per litre for petrol while diesel rate has risen by Rs 3.16 a litre. Also Read – Petrol Prices Near ₹90/litre in Delhi, ₹100 in Mumbai. Check Rate In Your City

These are the fuel prices in major cities:

Reason behind diesel, petrol price hike

The current price rise is largely due to the steep increase in central taxes of petrol and diesel and firm crude prices. Fuel prices had collapsed in April 2020 as the country entered a complete lockdown due to coronavirus pandemic. However, as economies around the world focus on revival with reduced travel restrictions and increased factory output, the global demand has improved directly affecting the price hike.

Another reason is Budget 2021 which has also imposed a new agriculture infrastructure and development cess. It must be noted that state and central taxes are about 180 per cent of the base price of petrol and about 141 per cent of the base price of diesel in Delhi. As the fuel prices rose, experts in the field expected a cut on central excise duty. However, petroleum minister Dharmendra Pradhan has ruled out any cut in duty on petroleum products.

Petrol and diesel prices have increased 19 times in 2021 with the two auto fuels increasing by Rs 5.28 and Rs 5.48 per litre respectively so far this year.