Fuel prices at record high as brent crude rates soar

In Bengaluru, petrol costs Rs 89.83 per litre, while diesel price stands at Rs 82.79 per litre

Fuel prices touched a record high on Tuesday after petrol and diesel prices went up by 35 paise.

Petrol price in Delhi now stands at Rs 87.30 per litre and in Mumbai, it costs Rs 93.83 per litre. Diesel costs Rs 77.48 per litre in Delhi, while in Mumbai, it stands at Rs 84.36 per litre.

In Bengaluru, petrol costs Rs 89.83 per litre, while diesel stands at Rs 82.79 per litre.

Also read — High Brent crude rates dash hopes of tax cut on petrol, diesel

On Monday, Brent crude oil prices for April delivery reached $60 a barrel, the highest in a year supported by economic revival hopes and supply curbs by producer group OPEC and its allies. Rising crude prices are expected to impact petrol and diesel rates in India, which have now hit a new record high.

Also read — Explainer | Why are petrol, diesel prices rising?

Continuous increase in petrol and diesel prices may push the overall prices of other commodities higher.

Despite the Reserve Bank of India nudging the Centre to cut petroleum prices, government officials privy to the development said it is highly unlikely that the Centre will move to cut excise duty or any other taxes as there is no fiscal space.

Fuel prices were last hiked by 30 paise on February 5.

Rates have risen by Rs 3.59 per litre in case of petrol and by Rs 3.61 on diesel in 2021.

Last week, Mukesh Kumar Surana, head of India's third-largest fuel retailer Hindustan Petroleum Corporation Ltd (HPCL), said that a sudden spike in international oil prices because of a perception of mismatch in demand and supply as well as a cut in production by Saudi was fuelling the retail price hikes. He had said that only 25-30 per cent of the retail pump rates are dependent on cost and the rest are central and state taxes.

"We probably have no choice but to pass on the variation (in benchmark cost) to the consumer," he had said. "The government has taxation handle."

Also last week, Oil Minister Dharmendra Pradhan told the Rajya Sabha in a written reply to a question that excise duty levied by the central government makes up for Rs 32.98 per litre of the price of petrol in Delhi and sales tax or VAT of the state government constitutes Rs 19.55.

For diesel, the central excise adds up to Rs 31.83 and VAT to Rs 10.99, he had said.

Besides, the price includes a dealer commission of a minimum Rs 2.6 per litre on petrol and Rs 2 on diesel.

Retail petrol rates have risen by Rs 17.71 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 15.19.

(With inputs from PTI)