Hike in diesel and petrol prices in major cities; latest list released

As the days pass, the price of diesel and petrol seems to increase, burdening the consumers. How will the latest hike affect the people?

Petrol prices were hiked by 3-10 paise per liter and diesel rates were increased by 6-12 paise per liter in the four major cities on Saturday. With this increase, effective 6 am on Saturday, December 16, petrol costs Rs.69.13 per liter in Delhi, Rs. 71.89 per liter in Kolkata, Rs.76.88 per liter in Mumbai and Rs. 71.64 per liter in Chennai, according to Indian Oil Corporation’s website. Diesel costs Rs. 58.44 per liter, Rs. 61.1 per liter, Rs. 61.55 per liter and Rs. 61.55 per liter in the four metros, respectively.

Despite Saturday’s increase, petrol rates in Delhi, Kolkata, and Chennai are down 11-12 paise per liter so far this month. However, in Mumbai, petrol price has risen by 36 paise per liter since November 30, according to the Indian Oil website – iocl.com. Diesel rates are up 5-50 paise per liter in Delhi, Mumbai, Kolkata, and Chennai.

Oil market companies – IOCL, Hindustan Petroleum Corporation (HPCL) and Bharat Petroleum Corporation (BPCL) – switched to a daily revision system for petrol and diesel prices on June 16 this year. Previously, the rates were changed every fortnight. The move to daily revision was in their bid to immediately pass on any movement in international oil prices to consumers and avoid sharp spikes by spreading them in small doses.

Since the shift to daily revisions, petrol price has risen by Rs. 2.22 per liter in Delhi; Rs. 2.37 per liter in Kolkata, and Rs. 1.71 per liter in Chennai. Diesel price has increased by Rs. 2.5 per liter, Rs. 2.82 per liter and Rs. 2.33 per liter respectively, according to the IOC website. In Mumbai, petrol price has fallen by Rs. 1.56 per liter while diesel price has come down 12 paise per liter during this period.

Petrol and diesel don’t come under the ambit of GST (Goods and Services Tax). Besides, global prices, excise duty, and VAT determine the domestic price of petrol and diesel. India relies on imports to meet 80% of its needs and so domestic fuel rates have been aligned to movement of equivalent product prices in the international market.

Post Your Comments