New Delhi: Fuel prices continued to maintain an upward trend with petrol and diesel rates hiked by another 40 paise per litre each on Monday, compounding an increase of about ₹8.40 a litre in twelve revisions in 14 days so far.
Price of petrol & diesel in Delhi at Rs 103.81 per litre & Rs 95.07 per litre respectively today (increased by 40 paise)
In Mumbai, the petrol & diesel prices per litre at Rs 118.83 (increased by 84 paise) & Rs 103.07 (increased by 43 paise). pic.twitter.com/yv6q7yHUWq
— ANI (@ANI) April 4, 2022
In the national capital, the petrol price is now 103.81 per litre while diesel is selling at ₹95.07 per litre. In Mumbai, the petrol and diesel prices have gone up by 42 paise, to ₹118.83 and diesel price went up by 43 paise to ₹103.07 per litre respectively.
In Chennai, the petrol and diesel prices are at ₹109.34 and ₹99.42 per litre . In Kolkata, the price of petrol is ₹113.45 (increased by 42 paise) and diesel is ₹98.22 (increased by 40 paise). In Bengaluru, one litre of petrol will cost ₹109.41 and one litre of diesel will cost ₹93.23.
Opposition parties have been targeting the central government over the continued rise in fuel prices since the ending of a four-and-half-month long hiatus in rate revision on March 22. Under its ‘Mehngai Mukt Bharat Abhiyan’ against price rises, Congress is organising rallies and marches across the country.
On Sunday, Punjab’s ruling Aam Aadmi Party (AAP) blasted the Centre over an “exponential” increase in fuel prices and accused it of “looting” the public.
Punjab finance minister Harpal Singh Cheema said, “By constantly increasing the prices of petrol and diesel just after the assembly elections in five states, the Modi government is looting the general public.”
“The common people of the country are already facing the brunt of inflation. Crores of people are not able to afford basic amenities. But it is very unfortunate that instead of providing relief to the public in such times, the central government is increasing the troubles of the common people by increasing the prices of petrol-diesel, cooking gas and other essential items,” the senior AAP leader said in a party statement.
There had been a pause in the revision of fuel prices since November 4 last year, which was broken on March 22, following the prices of crude oil going upwards in the wake of the Russian military operations in Ukraine.
Prices are set to be raised further given the sharp jump in crude oil prices in the international markets. It will have a cascading impact on the prices of other items and lead to inflationary pressure and hurt growth while also impacting the prices of other items.
Notably, on November 3 last year the Centre had cut excise duty by ₹5 per litre on petrol and ₹10 per litre on diesel to bring down the retail prices across the country.
Following this, several state governments had reduced Value-Added Tax (VAT) on petrol and diesel to provide relief to people.
Oil companies “will need to raise diesel prices by ₹13.1-24.9 per litre and ₹10.6-22.3 a litre on gasoline (petrol) at an underlying crude price of USD 100-120 per barrel,” according to Kotak Institutional Equities.
Crisil Research said a ₹9-12 per litre increase in retail price will be required for a full pass-through of an average USD 100 per barrel crude oil and ₹15-20 a litre hike if the average crude oil price rises to USD 110-120.
India is 85 per cent dependent on imports for meeting its oil needs and so retail rates adjust accordingly to the global movement.