Petrol price close to Rs 88-mark in Delhi, diesel near Rs 85-level in Mumbai

Petrol price in the national capital closed in on record Rs 88 per litre mark while diesel neared Rs 85 in Mumbai after rates across the country were hiked for the third day in a row on Thursday. Petrol price was increased by 25 paise per litre and diesel by 30 paise a litre, according to a price notification of state-owned fuel retailers.

This took petrol price to an all-time high of Rs 87.85 a litre in Delhi and to Rs 94.36 in Mumbai. Diesel rates rose to Rs 78.03 per litre in the national capital and to an all-time high of Rs 84.94 in Mumbai. Rates vary from state to state depending on the local incidence of taxation (VAT) and freight. In three days, prices have gone up by 90 paise per litre each.

Oil Minister Dharmendra Pradhan on Wednesday had told Parliament that the government is not considering a reduction in excise duty to cool rates from their record highs. Rates have risen as international oil prices touched USD 61 per barrel for the first time in more than a year on improving demand outlook amid the global rollout of COVID-19 vaccines, he had said.

Central and state taxes make up for over 61 per cent of the retail selling price of petrol and about 56 per cent of diesel. Retail petrol rates have risen by Rs 18.26 per litre since mid-March 2020 after the government raised taxes by a record margin to mop up gains arising from fall in international oil prices. Diesel rates have gone up by Rs 15.74.