Fuel Prices Surge Again After Weekend Pause

Petrol and diesel prices have been hiked again in India today after a two day pause over the weekend, when the prices remained stable. The rates were hiked marginally on Monday across metro cities- Delhi, Mumbai, Chennai and Kolkata. Fuel prices in India have hit a record high with today's rise following which states like Rajasthan and Madhya Pradesh also joined and petrol rates have breached the Rs. 100 per litre mark in these states. This is the fifth increase in petrol and diesel prices since May 4, taking the fuel prices to their highest level so far.

Also Read: COVID-19 Shaved-Off 20-25 Per Cent Of Auto Fuel Demand In April 2021

This is the second instance that the petrol rate has crossed Rs. 100 per litre mark this year. Petrol price had crossed the Rs. 100 per litre mark for the first time on February 17, 2021, in Sri Ganganagar district of Rajasthan, which bears the highest Value Added Tax (VAT) rate in the country. Petrol price is at an all-time high in Delhi and Mumbai, retailing at Rs. 91.53 per litre and Rs. 97.86 per litre, respectively. In the last four days, petrol has seen a price of Rs. 1 per litre while diesel witnessed a hike of around Rs. 1.30 per litre. The Centre levies an excise duty of Rs. 32.90 per litre and Rs. 31.80 on petrol and diesel, respectively. In 2020, the Indian government increased excise duty on petrol and diesel (cumulatively) by Rs. 13 per litre and Rs. 16 per litre, respectively on March 16 and May 5 after crude prices collapsed due to the COVID-19 pandemic.

Also Read: Petrol Prices Surpass ₹ 100/Litre Mark For The Second Time This Year

The COVID-19 crisis has impacted fuel demand.

The ongoing COVID-19 crisis has also impacted auto fuel demand last month, which according to a consultancy Wood Mackenzi has recorded a slump of 20 - 25 per cent. During last year's lockdown, India's oil demand fell by 1.2 million barrels per day in April-June, recording around 25 per cent drop. Road traffic was particularly impacted, recording a peak decline of 45 per cent during April 2020. Oil product consumption almost halved in April 2020 with petrol demand going down by a record 60.5 per cent and diesel by 55.6 per cent.