Diesel and petrol prices recorded an increase for the sixth day in succession as global crude prices gained stability. Diesel and petrol prices are revised on a daily basis by oil marketing companies based on the daily price revision process. Diesel prices soared to their highest ever levels, while petrol prices continued to stay above 4-year high level.
Indian Oil revealed that metro cities saw non-branded petrol prices rise by 11 to 13 paise per litre on Tuesday, while the price of diesel increased by 13 to 14 paise per litre. Petrol prices in Delhi stood at Rs.73.95 per litre, making it the highest recorded rate since they hit Rs.76 in September 2013. Petrol prices in Kolkata stood at Rs.76.66, Rs.76.72 in Chennai, and Rs.81.8 in Mumbai. Meanwhile, diesel traded at Rs.64.82 per litre in the capital; Rs.68.38 in Chennai, Rs.69.02 in Mumbai, and Rs.67.51 in Kolkata.
Government taxes at the state and central level affect domestic diesel and petrol prices apart from the rupee-dollar exchange rate and worldwide crude prices. Worldwide crude prices have increased to almost $70 per barrel.
Dharmendra Pradhan, the Oil Minister, said that bringing diesel and petrol under the ambit of GST will benefit consumers. The government is not keen on lowering excise duty anytime soon so that the relentless increase in global oil prices can be cushioned. From November 2014 to January 2016, excise duty was increased 9 times by the government.