- Price hiked by 33 paise per litre for petrol today
- Latest increase sees diesel price up by 58 paise per litre
- Cumulative hike in prices in the last 16 days by Rs 8.30/litre for petrol and Rs 9.46/litre for diesel
Petrol and diesel fuel prices in India have scaled record new highs as they continue their upward march. As per IOCL, the price of petrol in Delhi rose today (Monday, June 22) to hit Rs 79.56 per litre (up by 33 paise from Sunday), while diesel saw an increase of 58 paise to Rs 78.85 a litre. The price increases mark 20-month highs for both fuels. With today’s hike, prices of these two fossil fuels have cumulatively risen by Rs 8.30 (petrol) and Rs 9.46 (diesel) per litre in the past 16 days.
FUEL PRICES AS OF JUNE 22 (per litre)
PETROL
Mumbai: Rs 86.36
Delhi: Rs 79.56
Chennai: Rs 82.87
Kolkata: Rs 81.27
DIESEL
Mumbai: Rs 77.24
Delhi: Rs 78.85
Chennai: Rs 76.30
Kolkata: Rs 74.14
Excise duty on fuels hits Indian motorists' wallets hard
It may be recollected that on May 6, the government had sharply increased excise duty on the fuels – Rs 10 per litre on petrol and Rs 13 per litre on diesel – aimed at generating an estimated Rs 1.6 lakh crore of additional revenue.
As of June 16, the excise duty component on petrol in Delhi (priced at Rs 76.73 then) was Rs 32.98 a litre, which accounts for 43 percent of the price of a litre of the fuel. Diesel (priced at Rs 75.19 on June 16) includes excise duty of 42.33 percent at Rs 31.83 per litre. For the detailed price build-up refer the tables below. The split for the very latest petrol and diesel price build-up is not available in the public domain yet.
Historically, motorists in India have not benefitted from low global crude oil rates. Last month, crude oil had dropped to a record low of $20 per barrel but a commensurate benefit did not accrue to them.
India, which is the world's third-largest oil consumer, imports about 84 percent of its fossil fuel needs. Industry estimates have it that if crude prices rise by $1 per barrel, the country’s net import bill will increase by Rs 3,029 crore and vice versa. Further, if the exchange rate rises by a rupee to a dollar, the net import bill will increase by Rs 2,473 crore. This not only means a huge bonanza in terms of savings for Indian oil marketing companies but also potentially lower automotive fuel prices for motorists, as it would translate to much lower petrol/diesel bills.
However, if past trends are any indicator, then it will be safe to assume that all the benefits of lower crude are unlikely to get passed on to the end consumer. The Central and State governments have in the past raised the duties and taxes in order to shore up additional revenue collection.
The ongoing price hike in petrol and diesel prices comes at a time when the automobile industry and motorists can least afford it, and it just adds to the cocktail of bad news like the COVID-19 pandemic, a prolonged economic slowdown that threatens to continue, the automobile industry gingerly returning to production, and consumers preferring to delay purchase.
Also see:
India's most fuel-efficient BS6 petrol cars
India’s most fuel-efficient BS6 diesel cars
Maharashtra puts Great Wall Motors investment on hold
IRDAI withdraws long-term own damage cover for motor vehicle insurance
Automotive retail sales in India down 89 percent in May 2020