Petrol and diesel price shot up again on Wednesday scaling new height

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The price of petrol and diesel shot up again on Wednesday scaling new heights. This is the third time in this week, price of petrol and diesel increased by the oil marketing companies. The price hike on Wednesday was the seventh time, the motor fuel prices were increased in May 2021. The price of both the fuels has been increased by 25 paise a litre on Wednesday.

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With the latest price hike of motor fuels, petrol and diesel prices in Delhi are 92.05 per litre and 82.61 a litre, while in Mumbai per litre price of petrol and diesel are 98.36 and 89.75, respectively. In Chennai, the price of per litre petrol and diesel are 93.84 and 87.49 respectively, while in Kolkata the petrol and diesel prices are 92.16 and 85.45 for a litre, respectively.

With the latest price hike for both petrol and diesel, petrol price crossed 100 mark in few more places of Rajasthan, Maharashtra and Madhya Pradesh. These states impose a high rate of VAT on motor fuels, which resulted in the crossing of 100 mark for petrol.

So far this month, petrol price has increased by 1.65 per litre and diesel has shot up by 1.88 in New Delhi.

The price hike of motor fuels was temporarily paused during the assembly elections in four states. However, immediately after the state election results came out, the oil marketing companies restarted the price hike last week, when both petrol and diesel prices were increased for four straight days last week.

The series of price hikes last week erased all the reduction in motor fuel rates made during the four downward price revisions between March 24 and April 15.

Petrol and diesel prices vary from state to state depending on the rate of VAT and freight charges. Apart from this, the central government also imposes excise duty on auto fuels.

The central and state government taxes make up for 60% of the retail selling price of petrol and more than 54% of diesel. Currently, the central government levies 32.90 per litre of excise duty on petrol and 31.80 a litre on diesel.