Petrol crosses Rs 100 mark; Here’s why fuel rates are rising again?

Petrol crosses Rs 100 mark; Here's why fuel rates are rising again?

Fuel rates are rising at record high across India. This comes after another fuel rate revision on Friday.

Petrol got costlier by 31 paise per litre in Delhi. While diesel rates went up by 28 paise per litre. The rates are according to price notification by the oil retailers.

Post the rise in fuel rates, a litre of petrol in Delhi is now retailing at Rs 95.85. Whereas diesel costs Rs 86.75 per litre. In Mumbai, petrol is being sold at Rs 102.04 per litre, while diesel has reached Rs 94.15 per litre.

Currently, petrol is retailing above Rs 100 per litre mark in six states and UTs namely Rajasthan, Madhya Pradesh, Maharashtra, Andhra Pradesh, Telangana and Ladakh.

Sri Ganganagar district of Rajasthan has the costliest fuel in India, where petrol is priced at Rs 106.94 a litre and diesel at Rs 99.80.

What’s causing the rise in fuel rates?

In 2021, the price of crude oil has risen sharply post the recovery in global demand. The price of Brent crude has risen by 37.1 per cent to about 71 dollar per barrel from about 51.8 dollar per barrel at the beginning of the year.

Increase in central and state taxes on petrol and diesel remain key reason for the rise in fuel rates.

Moreover, the central government had in 2020 hiked the excise duty on petrol by Rs 13 per litre and on diesel by about Rs 16 per litre to shore up revenues after the pandemic.

However, Rajasthan, West Bengal, Assam and Meghalaya have reversed hikes in state levies. But the central government has not cut central taxes despite repeated calls from the RBI to do so. CLICK HERE TO READ MORE

Since May 4, this is for the 23rd time that fuel prices have risen. Union Petroleum Minister Dharmendra Pradhan blames a surge in global crude oil prices for the rising domestic fuel rates.

Pradhan maintains that the government currently is not considering any cuts in taxes on petrol and diesel. Since the earning is less. Therefore, the government cannot compromise on the expenditure.

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