Surging international oil rates and exorbitant domestic tax structure are two key reasons for high rates of petrol and diesel in pumps.
On Tuesday state-run oil companies raised petrol price by 23 paise per litre and diesel by 25 paise. This is the 13th hike in 22 days, making petrol costlier by Rs 3.04 a litre and diesel by Rs 3.59 since May 4. Surging international oil rates and exorbitant domestic tax structure are two key reasons for high rates of petrol and diesel in pumps.
Petrol, which has crossed the Rs 100 per litre mark in several cities, is also on an all-time high at Rs 99.71 a litre in Mumbai. Diesel is sold at a record Rs 91.57 per litre in the financial capital.
With the latest hike, pump prices of petrol and diesel in Delhi surged to a new record of Rs 93.44 per litre and Rs 84.32 a litre, respectively.
While fuel rates in Delhi are the benchmark for the entire country, retail prices of the two fuels differ from place to place because of variations in state taxes and local levies.
Some of the cities selling fuel over Rs 100 per litre are Ratnagiri, Parbhani, Aurangabad, Indore, Bhopal, Gwalior, Jaisalmer, Ganganagar, and Banswara.
Crude oil price data
Global oil prices surged on demand optimism and a snag on the possibility of lifting the US sanction on Iranian crude supply.
The American Petroleum Institute released crude oil reserves data on Tuesday. According to the API, there was a draw of 4.39 lakh barrels of crude oil in the week that ended on May 21.
This means that to complete this, there will be a purchase for the entire week. Therefore, crude oil demand increased, and on Tuesday crude oil prices shot up.
In the previous week, there were 6.20 lakh barrels of crude oil inventory. However, in the domestic market today, government oil companies did not make any change in the price of petrol and diesel.
Just a day before, while the price of diesel was increased by 25 paise per liter, the price of petrol was increased by 23 paise per liter.
On Wednesday, petrol in the Delhi market remained at Rs 93.44 per liter and diesel at Rs 84.32 per liter.
Petrol expensive by Rs 3.09 in 14 days
For the last two months, the process of assembly election was going on in four states and one union territory of the country.
Therefore, even after crude oil was expensive last month, there has been no increase in petrol-diesel price.
However, during this period after crude oil became cheaper, petrol and diesel prices were reduced in four installments.
This made petrol cheaper by 77 paise per liter. This month its price has again started increasing.
After the election, petrol has become costlier by 3.09 paise per liter within 14 days.
Diesel expensive by Rs 3.56 in 14 days
The Election Commission had issued a notification on February 26 for the Assembly elections in four states and one union territory.
After this, the government oil companies had last raised the price of diesel by 17 paise per liter on February 27, 2021.
After this, there was no increase in its price for more than two months.
However, during March-April, the price of diesel was reduced on four occasions. Because of this, it became cheaper by 74 paise per liter.
After the elections were over, within 14 days, the cost of diesel rose by Rs 3.56 per liter.
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