The price of diesel hit a record high on Sunday after state-run oil marketing companies raised its rate by 60 paise per litre and that of petrol by 35 paise, taking the cumulative increase to Rs 8.88 a litre and Rs 7.97 respectively in a fortnight.
According to a price notification of state oil marketing companies, petrol in Delhi will now cost Rs 79.23 per litre, up from Rs 78.88, and diesel rates Rs 78.27 per litre from Rs 77.67.
Petrol and diesel prices had touched a record high in 2018. Diesel rate had touched a peak of Rs 75.69 per litre in Delhi on October 16, 2018, and petrol price had mounted to Rs 84 a litre in Delhi on October 4, 2018.
Petrol in Mumbai will cost Rs 86.04 per litre and diesel has been priced at Rs 76.69.
The daily increase in fuel rates started on June 7 as oil companies resumed daily revision in prices in line with costs after ending an 82-day gap. It has taken diesel prices to fresh highs and petrol price too is at a two-year high.
The 82-day freeze in rates this year was imposed in mid-March soon after the government raised excise duty on petrol and diesel to shore up additional finances.
The government had on March 14 increased excise duty on petrol and diesel by Rs 3 per litre each and then again on May 5 by a record Rs 10 per litre in case of petrol and Rs 13 on diesel. They gave the government Rs 2 lakh crore in additional tax revenues.
Indian Oil Corp (IOC), Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL) instead of passing on the excise duty hikes to customers, adjusted them against the fall in the retail rates that was warranted because of a decline in international oil prices to two-decade lows.
International oil prices have since rebounded and oil firms are now adjusting retail rates in line with them.
Rates have been increased across the country and vary from state to state depending on the incidence of local sales tax or value-added tax (VAT).
Taxes make up for nearly two-thirds of the retail selling price. As much as Rs 50.69 per litre or 64% in petrol price is due to taxes—Rs 32.98 is the central excise duty and Rs 17.71 is local sales tax or VAT.
In the case of diesel, over 63% of the retail selling price is taxes. Out of the total tax incidence of Rs 49.43 per litre, Rs 31.83 is by way of central excise and Rs 17.60 is VAT.
Here are the latest petrol, diesel prices in top cities:
New Delhi: Petrol Rs 79.23 and diesel Rs 78.27
Mumbai: Petrol Rs 86.04 and diesel Rs 76.69
Chennai: Petrol Rs 82.58 and diesel Rs 75.80
Hyderabad: Petrol Rs 82.25 and diesel Rs 76.49
Bengaluru: Petrol Rs 81.81 and diesel Rs 74.43
Gurugram: Petrol Rs 77.48 and diesel Rs 70.74