Petrol stable after breaching Rs 86 a litre in Delhi, diesel crosses Rs 76

Rates differ from state to state, depending on value-added tax. Petrol and diesel prices are revised on a daily basis

Petrol price on Wednesday remained stable after edging past Rs 86-a-litre mark in the national capital on Tuesday, while diesel soared above Rs 76. 

Petrol and diesel prices were hiked by 35 paise per litre each on Tuesday, according to a price notification from oil marketing companies. This took petrol price in Delhi to Rs 86.05 per litre and Rs 92.62 in Mumbai.

Fuel prices, which vary from state to state depending on local sales tax or VAT, are now at a record high in the country, prompting calls for a cut in excise duty to ease the burden on consumers.

Oil Minister Dharmendra Pradhan last week blamed Saudi oil output cut for the surge in oil prices but remained non-committal on tax cuts. Top oil explorer Saudi Arabia has pledged additional voluntary output cuts of 1 million barrels per day in February and March, which has led to price climbing to most since the pandemic broke out.

In Bangalore, petrol and diesel prices surged by 36 paise and 37 paise respectively to Rs 88.95 and Rs 80.84. In Kolkata, the retail price of petrol price was increased by 34 paise to Rs 87.45 per litre.

Rates differ from state to state, depending on value-added tax (VAT). Petrol and diesel prices are revised on a daily basis in line with benchmark international price and foreign exchange rates. 

State-owned fuel retailers -- Indian Oil Corporation Ltd (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) -- had on January 6, resumed daily price revision after nearly a month-long hiatus.

Since then, rates have gone up by Rs 2.34 a litre on petrol and Rs 2.36 in case of diesel. This comes after international oil prices firmed up in hopes of demand returning from the rollout of coronavirus vaccines in different countries, including India.