The petrol prices skyrocketed in the nation’s capital on Thursday after the oil marketing companies (OMCs) raised the rates by 35 paise to Rs 86.65. The sudden rise in the prices has hit a new high record. Apart from petrol, even the Diesel prices were hiked by 35 paise a litre to Rs 76.8 in Delhi.
Speaking of petrol and diesel prices in the nation’s financial capital, Mumbai, the former now costs Rs 93.20 and the latter is being sold at Rs 86.67 per litre respectively.
For the unversed, prior to pushing the rates today, the OMCs (Indian Oil Corporation, Bharat Petroleum, and Hindustan Petroleum) paused the rates for seven days straight.
Back on October 4, 2018, the Petrol Price was very close to breaking the all-time high level of Rs 84 per litre. In recent happenings, it touched Rs 83.71 per litre on December 7, 2020.
But the fluctuation in the price was halted ever since then with no revision in the prices by the OMCs in the month. The prices started to rise again only on January 6, 2021.
The current prices of petrol and diesel are in accordance with the steep increase in the central taxes of these substances and also the firm crude price. Apart from all this, the newly presented budget also imposed a new agriculture infrastructure and development cess.
In the recently presented Union Budget 2021, Finance Minister Nirmala Sitharaman announced the imposition of Rs 2.5 per litre Agri cess on petrol and Rs 4 per litre on diesel. However, this was offset by an equivalent reduction in excise duty.
Meanwhile, a Basic Excise Duty (BED) of Rs 2.98 per litre is applicable on petrol, and another Rs 12 a litre is levied as special additional excise duty (SAED). Apart from this Rs 18 is also charged as road and infrastructure cess.
In order to accommodate the Agri cess, the Basic Excise Duty (BED) was cut to Rs 1.4 and SAED to Rs 11.
On the other hand, speaking of diesel, BED was cut from Rs 4.83 to Rs 1.8 a litre and SAED to Rs 8 from Rs 9 a litre.
A while back, the executives of OMCs had dropped a hint that petrol and diesel prices may increase further in the future. It is allegedly to balance retail prices in line with global development to prevent oil companies from suffering losses.