Petrol, diesel prices hit another peak days after reaching 55-month high
On Sunday, petrol cost Rs 74.40 a litre in Delhi, Rs 77.10 in Kolkata, Rs 82.25 in Mumbai and Rs 77.19 in Chennai.
The cost of fuel across India rose again on Sunday, three days after it reached its highest price in 55 months. In Delhi, petrol cost Rs 74.40 per litre, up from Rs 74.08 a litre on Friday, according to Indian Oil. In Kolkata, it was priced at Rs 77.10, in Mumbai at Rs 82.25, and in Chennai it was retailed at Rs 77.19.
Diesel rates also touched a record high of Rs 65.65 in Delhi. In Kolkata, it retailed at Rs 68.35, in Mumbai at Rs 69.91, and Rs 69.27 in Chennai.
State-run oil companies said that the fuel hike was necessary because of increasing international oil prices, PTI reported.
India has the highest retail prices of petrol and diesel among South Asian nations as taxes account for half of the pump rates. The government raised the excise duty on fuel nine times between November 2014 and January 2016 to shore up finances as global oil prices declined, but then cut the tax by Rs 2 a litre in October 2017.
A surge in global crude oil prices, curbs on production by the Organisation of the Petroleum Exporting Countries and high demand are considered the reasons for the increasing fuel prices. On April 11, Prime Minister Narendra Modi called on oil-producing countries to ensure “reasonable and responsible pricing” that will make energy accessible and affordable to all.
In June 2017, state-owned oil companies such as Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation discontinued a 15-year practice of revising rates every fortnight and switched to daily revisions. Consequently, any rise in global crude prices affects rates in India almost immediately.