The diesel price has mounted to the highest level on record at Rs 80.78 a liter, in Delhi. After a huge increase in petrol and diesel prices from the last one month, in Delhi, the diesel price has reached the highest level on record at Rs 80.78 a liter.
In the national capital, diesel prices are still high than that of petrol. Retail prices of automobile fuels differ from city to city across the country due to variations in local levies. Prior to the daily fluctuations in the price of fuels, diesel was sold at Rs 69.39 per liter and petrol was sold at Rs 71.26 per liter on June 6, in Delhi.
According to Indian Oil Corporation Limited (IOCL), the petrol price has remained the same for the 8th straight day, but it continues to stay above Rs 80 per liter mark. The diesel prices have been hiked 23 times and petrol prices 21 times in the last month. The cumulative increase has been Rs 11.39 per liter for diesel and Rs 9.17 per liter for petrol, in the national capital.
In Mumbai, the petrol price has climbed steadily reaching Rs 87.19 a liter and Rs 79.05 a liter for diesel, on the 13th day. Because of the present crisis, the economy is badly affected and there has been revenue loss, as the businesses and economy ain’t generating much revenue. The government considers fuel tax as a means to generate better revenue.
Pump prices of auto fuels that witnessed a rising streak since June 7 saw 12.86% and 16.41% jump in the rate of petrol and diesel, respectively. The prices of auto fuels vary from state to state depending on the incidence of local sales tax or the VAT. Companies are expected to keep to the international market trends to determine domestic fuel prices, but they often diverge.
Due to the decrease in demand followed by a drop-down in the crude oil prices in the International market during the corona-virus led lockdown, the Indian government forces excise duty on petrol and diesel by a record of Rs.10 per liter and Rs.13 per liter respectively, to collect Rs 1.6 lakh core additional revenue. With increased responsibilities and duties, the government made the fuel consumers pay over 250 percent collectively to state and center in excise duty. When the government distributes cash for the poor section of our society, its citizens are forced to buy less petrol and diesel.