Petrol, diesel prices continue to rise, hit new high on Friday. Check today�s rates in top cities

22-01-2021

State-controlled oil marketing companies (OMCs) increased the pump prices of petrol and diesel again on Friday (January 22) across the country, after keeping rates static for two days. Following today�s rate revision, petrol prices were hiked by 22-25 paise a litre while the price of diesel was raised by 23-27 paise across major metro cities of the country. In the national capital, petrol prices jumped to Rs 85.45 a litre as against Rs 85.20 per litre on Thursday while diesel is retailing at Rs 75.63 a litre, 25 paise more than yesterday�s price, as per data from Indian Oil Corporation website. Worth mention here is that this is the highest price for petrol in Delhi till date.

Rates in top cities
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Citizens in Mumbai have to shell out Rs 92.04 for a litre of petrol after a 24 paise rise over Thursday�s rate. A litre of diesel costs Rs 82.40, 27 paise more than yesterday�s price of Rs 82.13 a litre. In Kolkata, the retail price of petrol price was increased by 24 paise to Rs 86.87 a litre, from Rs 86.63 recorded on Thursday. Diesel costs Rs 79.23 a litre, 26 paise more than Thursday�s rate. Likewise, in Chennai, the retail prices of petrol and diesel are Rs 88.07 (22 paise increase) a litre and Rs 80.90 (23 paise more) a litre respectively. It is worth noting that the rates of auto fuels differ from state to state due to different local taxes and VAT imposed. So far in this month, the prices of petrol and diesel have increased by Rs 1.74 and Rs 1.76 per litre respectively in the national capital with OMCs deciding to break an earlier longer period of pause hiking the rates for the first time on January 6.

Excise duty soars 48%
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The excise duty rose by 48 per cent in the current fiscal on the back of a record increase in taxes on petrol and diesel. Excise duty collection during April-November 2020, was at Rs 1,96,342 crore, up from Rs 1,32,899 crore mop-up during the same period in 2019, as per data from the Controller General of Accounts (CGA). On January 19, Union Minister for Petroleum and Natural Gas Dharmendra Pradhan had said that fuel prices had gone up due to lower production in oil-producing nations because of the pandemic, mentioning that the lower production had caused an imbalance in demand and supply.

Dynamic pricing
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As per the daily pricing mechanism, the retail prices of p[retol and diesel in the country are dependent on the international crude prices and the rupee-US dollar exchange rate as India imports around 80 per cent of its crude requirements. On Thursday, the Indian rupee settled 6 paise more at a near five-month high of 72.99 against the US dollar.

Brent crude
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On Friday, in the international market, Brent crude prices dropped on concerns over new Covid restrictions in China will pause fuel demand in the world's biggest oil importer. International Brent crude oil futures were trading at $55.65 per barrel, down by 45 cents, or 0.8 per cent, from their last close. West Texas Intermediate (WTI) crude futures fell by 47 cents, or 0.9 per cent, to $52.66 per barrel.