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Fuel prices have been hiked for a 16th consecutive day. Petrol and diesel prices increased by Rs 0.33 and Rs 0.59, respectively. Fuel prices have witnessed a total increase of Rs 9.21 and Rs 8.55 per litre, for petrol and diesel respectively.
Prices at the national Capital stand at Rs 79.56 per litre of petrol and Rs 78.85 per litre of diesel. New prices were announced via a notification from state-owned oil marketing companies. The fuel prices are in effect across the country, although they vary across states because of local and value added taxes.
Prices at the country's financial capital stands at Rs 86.36 pre litre for petrol and Rs 77.24 per litre for diesel, while prices at Kolkata stand at Rs 81.27 and Rs 77.14 per litre for petrol and diesel respectively.
The increase in fuel prices are a result of petroleum and oil companies taking a decision to revise prices on a daily basis, after an almost 90 day hiatus due to the Covid-19 pandemic and the subsequent lock down that was called for.
Prices have been rocketing on a daily basis since 7 June, and has witnessed its biggest increase over the last two years. Taxes play a major role in the prices.
While roughly Rs 50.69 is the true cost of petrol, Central Excise Duty accounts for an additional Rs 32.98, and local sales taxes/ Value Added Taxes account for an additional Rs 17.71. As far as diesel is concerned, Rs 31.83 accounts for central excise duties, while Rs 17.60 accounts for local sales taxes/ Value Added Taxes.
The Central Government increased central excise duties on petrol and diesel by Rs 3.00 during March this year, and hiked it again during may buy an unprecedented Rs 10 and Rs 13 per litre for petrol and diesel, respectively. The increase resulted in Rs 2 lakh crore worth of revenues.
State-owned oil companies like the Indian Oil Corporation Limited, the Bharat Petroleum Corporation Limited, and Hindustan Petroleum Corporation Limited said that they adjusted fuel prices against a fall in rates instead of making customers pay the increase in excise duty.
Thoughts About Fuel Prices Increasing For The 16th Consecutive Day
We think a further increase in fuel prices will have a negative effect on the Auto Industry. The Indian buyer is money cautious and will rather save, than invest in a vehicle that appears to have increasing costs. And for some particular reason, Rs 2 lakh crore in added revenue doesn't seem to be enough.