Petrol price nears Rs 89-a-litre mark in New Delhi, diesel at Rs 79.35

In Chennai, petrol inched up 23 paise to sell at Rs 91.19
Petrol price is nearing to touch an all-time high of Rs 89 per litre in the national capital.

Petrol and diesel prices were hiked by 26 paise and 29 paise per litre each on Monday to touch Rs 88.99 and Rs 79.35 respectively, according to a price notification from oil marketing companies. The diesel prices stood at Rs 78.38. 

On Friday, petrol prices breached the Rs 88-a-litre mark to touch an all-time high of Rs 88.14 in New Delhi. 

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 95.46 on Monday as compared with Rs 95.21 yesterday. One litre of diesel will cost Rs 86.34 in the city. In Chennai, petrol inched up 23 paise to sell at Rs 91.19. Diesel was retailing at Rs 84.44 in the city. 

In Bangalore, petrol and diesel prices surged by 27 paise and 31 paise respectively to Rs 91.97 and Rs 84.12. In Kolkata, the retail price of petrol price was increased by 24 paise to Rs 90.25 per litre.

Fuel prices have been witnessing an upswing since the past month, leading to demands for a cut in excise duty. Earlier, Petroleum Minister Dharmendra 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. 

Last week, Pradhan ruled out any cut in excise duty, for now, to give relief to consumers from the spiralling retail prices of petrol and diesel which have touched all-time highs.

"There is no such proposal at present," he said in the Rajya Sabha when asked if the government was looking at cutting taxes to cool off prices. 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.

The union government levies Rs 32.9 per litre of excise duty on petrol and Rs Rs 31.80 a litre on diesel.

Retail petrol rates have risen by around Rs 19.16 per litre since mid-March 2020, after the government raised taxes by a record margin to mop up gains arising from fall in international oil prices. Diesel rates have gone up by Rs 16.77.

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