Petrol and diesel prices receive 14th hike on the trot, respite not in sight

Petrol and diesel prices today (Saturday) witnessed another jump across the country - the 14th in as many days - with a hike of 51 paise per litre for the former and 61 paise per litre for diesel in Delhi. Fuel prices have been going north with each day since daily revisions were resumed after an 83-day hiatus period as oil companies look at cutting down their losses while a cut in taxes imposed by central and state governments also looks highly unlikely.

Diesel prices in Delhi have shot up to record levels with each litre of the fuel now at ₹77.67, just a little short of ₹78.88 per litre that a customer would have to pay for petrol here. In Mumbai, diesel and petrol rates are at ₹76.11 and ₹82.27 per litre, respectively. In Kolkata, diesel per litre is at ₹73.07 while petrol is retailing at ₹80.62 per litre. The two fuels are at ₹75.29 and ₹82.27 per litre of diesel and petrol, respectively.

The price per litre of the two fuels vary from state to state because of different rates of local taxes and VAT imposed.

India is one of the world's largest importers of crude oil. In recent days of trading, crude prices have stabilized somewhat and are at $40 per barrel mark after falling drastically in April. The fate of oil in international markets is also linked to the number of cases of Covid-19 emerging around the world as demand tends to crash if countries go into lockdown. Additionally, some of the oil-producing countries have also now decided to cut back on production which could further boost international rates.

Sources had previously indicated that the spate of price hikes for both petrol and diesel could continue till the end of June. Governments too are unlikely to cut back on taxes imposed as it would have an impact on revenue generation. The prospect of bringing the two fuels under Goods and Services Tax (GST) is also an extremely bleak possibility