DIESEL RATES HIT RECORD HIGH AF­TER 15TH STRAIGHT DAY OF IN­CREASE

Hindustan Times (Jalandhar) - - FRONT PAGE - feed­back@livemint.com

NEWDELHI: Diesel price on Sun­day hit a fresh record high af­ter rates were hiked by 60 paise per litre while petrol price was up 35 paise, tak­ing the cu­mu­la­tive in­crease in rates in 15 days to ₹8.88 a litre and ₹7.97 re­spec­tively. Petrol price in Delhi was hiked to ₹79.23 per litre from ₹78.88, while diesel rates were in­creased to ₹78.27 a litre from ₹77.67, ac­cord­ing to a price no­ti­fi­ca­tion of state oil mar­ket­ing com­pa­nies.

Rates have been in­creased across the coun­try and vary from state to state de­pend­ing on the in­ci­dence of lo­cal sales tax or VAT. Taxes make up for nearly two-thirds of the re­tail sell­ing price. As much as ₹50.69 per litre, or 64%, in petrol price is due to taxes—₹32.98 is the cen­tral ex­cise duty and ₹17.71 is lo­cal sales tax or VAT.

Over 63% of the re­tail sell­ing price of diesel is taxes. Out of the to­tal tax in­ci­dence of ₹49.43 per litre, ₹31.83 is by way of cen­tral ex­cise and ₹17.60 is VAT. Petrol in Mum­bai costs ₹86.04 per litre and diesel is priced at ₹76.69.

The 15th daily in­crease in rates since oil com­pa­nies on June 7 restarted re­vis­ing prices in line with costs af­ter end­ing an 82-day hia­tus in rate re­vi­sion, has taken diesel prices to fresh highs. Petrol price too is at a two-year high.

Prior to the cur­rent rally, the peak diesel rates had touched was on Oc­to­ber 16, 2018 when prices had climbed to ₹75.69 per litre in Delhi. The high­est-ever petrol price was on Oc­to­ber 4, 2018 when rates soared to ₹84 a litre in Delhi. When rates had peaked in Oc­to­ber 2018, the gov­ern­ment had cut ex­cise duty on petrol and diesel by ₹1.50 per litre each.

The 82-day freeze in rates this year was im­posed in mid-March soon af­ter the gov­ern­ment hiked ex­cise duty on petrol and diesel to shore up ad­di­tional fi­nances. The gov­ern­ment on March 14 hiked ex­cise duty on petrol and diesel by ₹3 per litre each and then again on May 5 by a record ₹10 per litre in case of petrol and ₹13 on diesel.

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