The fuel prices climbed up again on Sunday and made a record by hiking 25paise in petrol and 30paise in diesel. Petrol Diesel prices have been soaring for the past few days, and on October 3, it has reached another peak by hiking 25paise and 30paise litre respectively.
It has set a new record across the country, and notably, the prices started walking after the crude oil rates jumped into the global market. Â
Prices in Different Cities
According to the notification of state-owned fuel retailers, the price of petrol in Delhi reached its highest ever peak of Rs.102.39 a litre and Rs108.43 in Mumbai. Diesel rates also touched a record of Rs90.77 in Delhi and Rs98.48 in Mumbai.
Petrol costs Rs.103.07 in Kolkata and Chennai it costs Rs.100.01 for one litre. Similarly, diesel costs Rs.93.87 in Kolkata and Chennai it costs Rs.95.31 for one litre. Prices differ from state to state because its local taxes.
Price chart of Petrol and Diesel in major Indian cities
CITY Â Â Â Â Â Â Â Â Â Â Â Â PETROL (PER LITRE) Â Â Â Â Â Â Â Â DIESEL (PER LITRE)
NEW DELHI Â Â Â Â Â Â Â Â Rs.102.39 Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Rs.90.77
MUMBAI Â Â Â Â Â Â Â Â Â Â Rs.108.43 Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Rs.98.48
KOLKATA Â Â Â Â Â Â Â Â Â Â Rs.103.07 Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Rs.93.87
CHENNAI Â Â Â Â Â Â Â Â Â Â Rs.100.01 Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Rs.95.31
BENGALURU Â Â Â Â Â Â Â Rs.105.95 Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Rs.96.34
PATNA Â Â Â Â Â Â Â Â Â Â Â Â Rs.105.24 Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Rs.97.10
Government Statement
Petroleum secretary Tarun Kapoor said that oil companies decide to align the retail rates with the cost, but they ensure that extreme volatility will be avoided. Although the govt. Officials believe that the situation is temporary and abnormal and it will stabilize over the next few weeks.
He also said that they were watching the situation and trying to ensure the impact of global volatility is moderated to some considerable extent. In addition, the amount of crude oil India buys has increased three-year high of $76.71 per barrel.
The Reason Behind Rising Fuel Prices
State-based oil refiners such as Indian Oil, Bharata Petroleum, and Hindustan Petroleum revise the fuel rate daily after international oil prices neared a three-year high. Now, the global benchmark Brent crude is trading above $78 per barrel.
Global prices of petrol, against which local rates are benchmarked, have risen from $85.10 per barrel to $87.11 in just one day, while diesel has gone up from $85.95 a barrel to $87.27.
Current Situations in Indian
Within the last 10days, Diesel prices hiked for the eighth time and reached the century in several cities in Madhya Pradesh, Rajasthan, Telangana, Odisha, and Andhra Pradesh. Similarly, the petrol price has increased by Rs.1.25per litre in five instalments this week.
The October 3 price hike is the fifth hike in petrol price within a week and the 10th hike in diesel rates in a 10days shot.
India is entirely dependent on imports to nearly 85% of oil needs, so it benchmarks local fuel rates to international oil prices. Thus, when global oil rates fell in July August, the petrol and Diesel price was also reduced by Rs.0.65 and 1.25 per litre.
Like Petrol diesel, the Indian government has increased the natural gas price by 62%, and LPG gas prices hiked from $665 to $797 under the domestic in one month.
Pricing Formula of Oil Companies
Under the pricing strategies of oil companies, fuel prices are reviewed and revised every day, and the new rates become effective from 6 am the morning.
Is There a Solution?
According to experts, there are only two ways to control the fuel price crisis – either government needs to bring it under GST or a reduction in excise duty. However, the central and state government is not that interested in slashing respective taxes as they have generated a high revenue amidst the lockdown.
The Centre of Petroleum of Product collects almost 90% of its excise duty. And on the other hand, states charge an average VAT of Rs.23 per litre.
How Fuel Prices Impact Citizens
The record price of fuel does not only affect the people who have vehicles; it also affects those who don’t own one.
The hike in fuel prices creates a massive impact on citizen’s life because higher fuel prices lead to higher inflation. It affects the prices of other essentials commodities as well. The cost of essential goods like Foods, medicines, etc., had been affected by the steep fuel prices.
