Fuel Prices SkyRocketing: Petrol and diesel prices rise for the 16th consecutive day

The prices of petrol and diesel have been increased once again on Monday. This is the 16th consecutive increase in fuel prices. In Delhi, the price of petrol has been increased by 33 paise and diesel by 58 paise. After which you will have to pay Rs 79.56 for one liter of petrol and Rs 78.85 for diesel.

Petrol price in Delhi was Rs 79.23 per liter on Sunday. After a 33 paise increase, today’s price has increased to Rs 79.56 per liter. At the same time, the price of diesel was Rs 78.27 on Sunday. Today’s price has increased to Rs 78.85 per liter after an increase of 58 paise.

Across Delhi, Mumbai, Chennai and Kolkata, the petrol price has been raised by 29-33 paise and diesel price by 50-58 paise.

Rates have been increased across the country and vary from state to state depending on the incidence of local sales tax or value added tax (VAT).

In Mumbai, petrol price has gone up from Rs 86.04 per litre to Rs 86.36 on June 22. Diesel rates have increased to Rs 77.24 a litre from Rs 76.69 a litre, according to the price notification.

A few days ago, Congress President Sonia Gandhi wrote a letter to PM Narendra Modi, protesting against the rising oil prices. The Congress President had demanded the withdrawal of the increased oil prices. She wrote in his letter that this decision is insensitive for a country struggling with the coronavirus crisis.

Sonia Gandhi wrote that the government is not doing any work to benefit the people. The Congress president wrote, ”Amidst this difficult time that started in March, the government has decided to raise the prices of petrol and diesel, taking a completely insensitive decision. Someone has given wrong advice to the government to increase the excise duty of petrol and diesel to earn Rs 2.6 lakh crore.”

The oil companies started revising the prices daily from June 7, 2020. This has seen prices of diesel and petrol soar to all-new highs and in fact a two-year high. 

Taxes make up for nearly two-thirds of the retail selling price. About Rs. 50.69 per litre, or 64%, in the petrol price, is subject to taxes Rs. 32.98 is the central excise duty and Rs. 17.71 is local sales tax or VAT. For diesel, over 63% of the retail selling price is taxes. Out of the total tax incidence of Rs. 49.43 per litre, Rs. 31.83 is by way of central excise while Rs. 17.60 is subject to VAT.

The government hikes excise duty on petrol and diesel by Rs 3 per litre each in March and it was again hiked in May by a record Rs. 10 per litre and Rs. 13 for petrol and diesel respectively. These two hikes gave the government Rs. 2 lakh crore in additional tax revenues.

The state-owned oil companies such as Indian Oil Corporation Ltd., Bharat Petroleum Corporation Ltd. and Hindustan Petroleum Corporation Ltd., adjusted the petroleum prices against the fall in the retail rates, instead of passing on the excise duty hikes to customers.

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