Petrol And Diesel Prices Hit An All-time High

If the trend continues, we’ll all soon have to resort to cycling for our daily commute

On Monday, petrol and diesel prices hit its highest ever mark due to the depreciation of rupee against dollar and the sharp rise in crude oil rates. Delhi recorded its highest ever price of petrol and diesel, which now stands at Rs 79.15 and Rs 71.15 for a litre, respectively. That said, the price of fuel in Delhi is supposed to be the most affordable when compared to other metros thanks to its lower sales tax and VAT (value added tax).

Moving towards the west, a litre a petrol in Mumbai now costs a whopping Rs 86.56, while the price of diesel has jumped to Rs 75.54 per litre. It's the steepest vertical since the price revision announced in mid-June 2017. Since mid-August, petrol has received a hike of Rs 2 per litre, while diesel has risen by Rs 2.42 for a litre in the same period.

This is mainly attributed to the dollar-rupee exchange rate, which now stands at Rs 71.42, and the sanctions imposed by the US on Iran. Owing to this, India had to decrease its fuel import from Iran, the third biggest producer of fossil fuels. This led to crude oil gaining $7 over a barrel within a fortnight. Brent crude oil is currently priced over $78 per barrel.

As a matter of fact, the increasing fuel prices (Rs 5 per litre) in the first half of the year still hasn’t stirred the government to reduce its excise duty, which still stands at Rs 10.12 per litre for diesel and Rs 16.42 on petrol. Take into account that India imports 82 per cent of its fuel and the price hike doesn’t sound surprising anymore.

Dharmendra Pradhan, the Union minister for petroleum and natural gas, has said that the rise in fuel prices in the country is “temporary”. He also added that a rise in global crude oil prices was responsible for the price surge in India.