Petrol price at an all-time high of Rs 87.85 in Delhi, diesel at Rs 78.03

Petrol price on Thursday touched a record high of Rs 87.85 in the national capital, two days after breaching the Rs 87-a-litre mark. 

Petrol and diesel prices were hiked by 25 and 30 paise per litre respectively on Thursday, according to a price notification from oil marketing companies. The diesel prices stood at Rs 78.03. On February 9, the petrol price topped the Rs 87-mark to touch an all-time high of Rs 87.30 in New Delhi. Prices of the two were hiked by 35 paise per litre each.
 

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. Petrol and diesel prices are revised on a daily basis in line with benchmark international price and foreign exchange rates. 

Petrol prices in Mumbai stood at Rs 94.36 on Thursday as compared with Rs 94.12 yesterday. One litre of diesel will cost Rs 84.94 in the city. In Chennai, petrol inched up 22 paise to sell at Rs 90.18. Diesel was retailing at Rs 83.18 in the city. 

In Bangalore, petrol and diesel prices dropped by 0.05 paise to Rs 90.48. In Kolkata, the retail price of petrol price was increased by 24 paise to Rs 89.16 per litre.

According to India Ratings and Research (Ind-Ra), the price hikes are supported by a gradual revival in global demand and continued production cuts by major suppliers.

Oil Minister Dharmendra Pradhan on Wednesday told Parliament that the government is not considering a reduction in excise duty to cool rates from their record highs.

Rates have risen as international oil prices touched $61 per barrel for the first time in more than a year on improving demand outlook amid the global rollout of Covid-19 vaccines, he had said.

Central and state taxes make up for over 61 per cent of the retail selling price of petrol and about 56 per cent of diesel.

Earlier, Pradhan had said that the fuel prices had gone up because of a lower production in oil-producing nations in the wake of the coronavirus pandemic. Organization of the Petroleum Exporting Countries in a meeting on February 3 decided to go on with the output curbs. 

However, on Monday, Saudi Arabia decided against raising crude supplies for March delivery to Asian consumers, including India, while raising the prices for other major consumers in the US and Europe. What this means is that even though crude prices may rise higher from the present levels of $60 a barrel, India along with other Asian consumers would continue to get discounts over the prevailing price. 

This came at an opportune time for India, where fuel prices have been inching towards historic highs.