New
Delhi:
price on Monday was
hiked
by
33
paise per litre and
by
58
paise
to take retail rates
to record high as the oil companies increased prices for the 16th day
in a row.
In 16 days,
petrol price has been
hiked
by Rs 8.3 per litre and
diesel
by Rs 9.46 - a record increase
in rates of the fuel
in any fortnight since pricing was deregulated
in April 2002.
Petrol price
in
Delhi was
hiked
to Rs 79.56 per litre from Rs 79.23 while
diesel rates were increased
to Rs 78.55 a litre from Rs 78.27, according
to a price notification of state oil marketing companies.
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).
The increase
in rates since June 7 is the highest
in any fortnight. When
petrol and
diesel pricing was deregulated
in April 2002, oil companies revised rates every fortnight
in line with the
cost. They switched
to daily price revision
in May 2017
to allow
cost
to reflect instantaneously
in retail rates.
According
to pricing data, the maximum rates have increased
in any fortnight was Rs 4-5 per litre.
The 16th daily increase
in rates, since oil companies on June 7 restarted revising prices
in line with costs after ending an 82-day hiatus
in
rate revision, has taken
diesel prices
to fresh highs.
Petrol price too is at a two-year high.
Prior
to the current rally, the peak
diesel rates had touched was on October 16, 2018, when prices had climbed
to Rs 75.69 per litre
in
Delhi. The highest-ever
petrol price was on October 4, 2018, when rates soared
to Rs 84 a litre
in
Delhi.
When rates had peaked
in October 2018, the government had cut excise duty on
petrol and
diesel
by Rs 1.50 per litre each. State-owned oil companies were asked
to absorb another Rs 1 a litre
to help cut retail rates
by Rs 2.50 a litre.
Oil companies had quickly recouped the Re 1 and the government
in July 2019 raised excise duty
by Rs 2 a litre.
Taxes make up for nearly two-third of the retail selling price. As much as Rs 50.69 per litre, or 64 per cent,
in
petrol price is due
to taxes - Rs 32.98 is the central excise duty and Rs 17.71 is local sales tax or VAT.
Over 63 per cent of the retail selling price of
diesel is taxes. Out of the total tax incidence of Rs 49.43 per litre, Rs 31.83 is
by way of central excise and Rs 17.60 is VAT.
In Mumbai,
petrol price has gone up from Rs Rs 86.04 per litre
to Rs 86.36 on Monday.
Diesel rates have increased
to Rs 77.24 a litre from Rs 76.69 a litre, according
to the price notification.
The 82-day freeze
in rates this year was imposed
in mid-March soon after the government
hiked excise duty on
petrol and
diesel
to shore up additional finances.
The government on March 14
hiked excise duty on
petrol and
diesel
by Rs 3 per litre each and then again on May 5
by a record Rs 10 per litre
in case of
petrol and Rs 13 on
diesel. The two hikes gave the government Rs 2 lakh crore
in additional tax revenues.
Oil PSUs Indian Oil Corp (IOC),
Bharat Petroleum Corp Ltd (BPCL) and
Hindustan Petroleum Corp Ltd (HPCL), instead of passing on the excise duty hikes
to customers, adjusted them against the fall
in the retail rates that was warranted because of fall
in international oil prices
to two decade low.
International oil prices have since rebounded and oil firms are now adjusting retail rates
in line with them.