Petrol price was very close to breaching the all-time high level of ₹84 a litre (reached on October 4, 2018) when it touched ₹83.71 a litre on December 7, 2020. The prices of petrol and diesel have increased by Rs 1.74 and Rs 1.76 per litre so far respectively in Delhi. Diesel prices rose to Rs 75.88 for each litre in the Capital, and in Mumbai it was priced at Rs 82.66 per litre. On average, the price for petrol in the state a day ago was Rs 90.65. The auto fuels had risen sharply by 25 paisa per litre each on Monday and Tuesday before OMCs made a decision to give relief to consumers from frequent price rise for last two days. Fuel prices, which vary from state to state depending on local sales tax or VAT, are now at record highs in the country, prompting cries for a cut in excise duty to ease the burden on consumers.
Retail prices of fuel in India are revised every day based on changes in global prices, foreign exchange rates, central government duties and local sales tax or VAT. The country imports more than 80 per cent of its petroleum product requirements.
"If the producing countries will not recognise our aspiration then new business models are bound to come up", he had noted. Crude price have remained firm for last couple of weeks in the wake of unilateral production cuts announced by Saudi Arabia and a pick up in consumption in all major economies globally. "And to have this on a sustainable basis, we need to adjust, we need to flexible, we need to be adaptable but it is all within the framework of 9.7 million bpd that will last until 2022".
Automobile fuels, mainly petrol, are sold at over Rs 90 per litre in some parts of the state.
This comes after global oil prices firmed up on hopes of demand returning from the rollout of coronavirus vaccines in different countries, including India.
Cornering the government on spiralling fuel prices, the Congress on Sunday demanded an explanation how exactly has the government spent ₹20 lakh crore that it earned by multiple hikes in excise duty on both petrol and diesel.
This is the second straight day of increase in fuel prices, with overall rates going up by Re 1 for every litre this week.
The prices are revised regularly, in keeping with benchmark worldwide prices and foreign exchange rates.