Taxes make up for nearly two-thirds of the retail selling price. As much as Rs 50.69 per litre, or 64 per cent, in petrol price is due to taxes — Rs 32.98 is the central excise duty and Rs 17.71 is local sales tax or VAT.
Petrol and Diesel prices, on January 26, increased by 35 paise after being unchanged for two days. The cost of petrol at record high at Rs 86.05 per litre in Delhi.
With increase in 35 paise, the cost of petrol and diesel is at Rs 92.62 per litre in Mumbai. Diesel price now cost Rs 76.23 per litre in Delhi and In Mumbai, the diesel prices cost is Rs 83.03 per litre.
Oil Minister Dharmendra Pradhan blamed Saudi oil output cut for the surge in oil prices but remained non-committal on tax cuts.
Top oil explorer Saudi Arabia has pledged additional voluntary output cuts of 1 million barrels per day in February and March, which has led to price climbing to most since the pandemic broke out.
State-owned fuel retailers — Indian Oil Corporation Ltd (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) — had on January 6, resumed daily price revision after nearly a month-long hiatus.
Since then, rates have gone up by Rs 2.34 a litre on petrol and Rs 2.36 in case of diesel.
This comes after international oil prices firmed up in hopes of demand returning from the rollout of coronavirus vaccines in different countries, including India.
Prior to the current high crude prices triggered the price hikes this month, fuel prices had last touched record high on October 4, 2018. At that time the government had cut excise duty on petrol and diesel by Rs 1.50 per litre in a bid to ease inflationary pressure and boost consumer confidence. Alongside, state-owned fuel retailers cut prices by another Re 1 a litre, which they recouped later.
This time, there are no indications of a duty cut so far. Petrol and diesel prices are revised on a daily basis in line with benchmark international price and foreign exchange rates.
