Petrol and diesel rates across the country have increased once again after a fresh hike on Tuesday. The development comes on a day when international crude oil prices rose further, holding near a more than 13-month high. Here is all you need to know:
February 23, 2021; After a two-day break, fuel prices in the country were hiked again by state-run oil marketing companies (OMCs) on Tuesday. Petrol and diesel rates across the country have been increased by roughly 35 paise each.
The development comes on a day when international crude oil prices rose further, holding near a more than 13-month high. In Delhi, petrol is retailing at Rs 90.93 per litre, while an equal quantity costs Rs 97.34 in Mumbai.
Petrol rates in several cities have crossed the Rs 90-mark. They are Kolkata (Rs 91.12), Chennai (Rs 92.90), Bengaluru (Rs 93.98), Bhubaneshwar (Rs 92), Hyderabad (Rs 94.54), Jaipur (Rs 97.34), Patna (Rs 93.56) and Thiruvananthapuram (Rs 92.81).
Petrol price has already crossed the century-mark in some cities and towns in Madhya Pradesh and Rajasthan. This has led to widespread panic among citizens in the country, who have requested the central government to cut the high rate of taxes on petrol and diesel.
Diesel prices have also seen an equally sharp rise in the country over the past few weeks. After today’s hike, it is retailing at Rs 81.32 per litre in Delhi and Rs 88.44 in Mumbai. It has crossed the Rs 90-mark in several cities and towns in Rajasthan and Madhya Pradesh.
The hike in diesel prices seems to be a bigger worry for citizens and several industries as it will have a cascading impact on the prices of many other commodities that have to be transported.
As petrol and diesel rates in the country continue to rise unabated, even Reserve Bank of India (RBI) Governor Shaktikanta Das has called for a reduction in indirect taxes on fuel.
He called for proactive supply-side measures in a co-ordinated matter by the Centre and states.
“Proactive supply-side measures, particularly in enabling a calibrated unwinding of high indirect taxes on petrol and diesel in a co-ordinated manner by centre and states are critical to contain further build-up of cost-pressures in the economy,” Das said.
It may be noted that central and state taxes make up for 60 per cent of the retail cost of petrol and over 54 per cent in the case of diesel.
While Prime Minister Narendra Modi had earlier blamed the previous UPA regime for the fuel price crisis in India, Union Finance Minister Nirmala Sitharaman also agreed a few days ago that both Centre and state should hold talks to bring down the retail cost of petrol and diesel.