Diesel prices touch all-time high, petrol rate highest in four years

Diesel Pumps

On Sunday, diesel prices touched an all-time high of Rs 64.50 per litre and that of petrol rose to Rs 73.70 per litre, the highest in four years, in Delhi, PTI reported. State-owned firms raised the rates by 18 paise in the national Capital.

According to a price notification, State-owned oil firms, which have been since June last year revising auto fuel prices daily, today raised petrol and diesel rates by 19 paisa per litre each in Delhi.

It stated that the hike, necessitated due to firming international oil prices, comes on back of a 13 paisa increase in rates of petrol effected yesterday and a 15 paisa hike in diesel.

Oil Ministry had earlier this year sought a reduction in excise duty on petrol and diesel to cushion the impact arising out of international oil rates but Finance Minister Arun Jaitley in his Budget presented on February 1 made no concessions.

India has the highest retail prices of petrol and diesel among South Asian nations as taxes account for half of the pump rates.

Jaitley had raised excise duty nine times between November 2014 and January 2016 to shore up finances as global oil prices fell, but then cut the tax just once in October last year by Rs 2 a litre.

Besides the global factors and the exchange rate of the rupee, the excise duty that the Indian government charges adds to the final amount consumers pay.

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