Petrol and diesel prices in Delhi hit new highs again on Friday as state-run oil marketing companies raised the fuel rates by another 30 paise a litre in the Capital, the Hindustan Times reported. On Thursday, prices of both the fuels were raised after a week’s gap, by 35 paise per litre.
On Friday, petrol was priced at Rs 86.95 per litre in Delhi, while diesel cost Rs 77.13 a litre. Meanwhile, in Mumbai, petrol and diesel prices stood at Rs 93.49 per litre and Rs 83.99 per litre, respectively – the highest among all four metros, according to NDTV.
On Thursday, Mukesh Kumar Surana, head of India’s third-largest fuel retailer Hindustan Petroleum Corporation Limited, had told PTI that there was a sudden spike in international oil prices to $59 (Rs 4,302.62) per barrel in the last two or three days because of a mismatch in demand and supply, as well as cut in production by Saudi Arabia. Surana, however, pointed out that only 25%-30% of the retail petrol pump rates were dependent on international benchmark cost and the rest were central and state taxes.
On Wednesday, Union Petroleum Minister Dharmendra Pradhan had informed the Rajya Sabha in a written reply that excise duty levied by the central government makes up for Rs 32.98 per litre of the price of petrol in Delhi and sales tax or Value Added Tax of the state government constitutes Rs 19.55.
The Centre introduced a new agriculture infrastructure and development cess of Rs 2.50 per litre on petrol and Rs 4 per litre on diesel, in the Union Budget presented on February 1. However, Finance Minister Nirmala Sitharaman said that the burden will not be on consumer, as the hike will be offset by reductions in basic excise duty and the special additional excise duty currently levied on petrol and diesel.