Fuel prices were revised upwards again on Friday as global oil prices continue to rise. Oil marketing companies have hiked both petrol and diesel prices by roughly 25 paise.
In Delhi, the price of a litre of petrol has increased from Rs 85.20 to Rs 85.45, while it has crossed Rs 92 in Mumbai. Petrol prices are now at their highest level in major cities like Kolkata (Rs 86.87), Chennai (Rs 88.16) and Bengaluru (Rs 88.33).
Diesel is also retailing at higher prices in all major cities after the fresh hike. In Delhi, a litre of diesel now costs Rs 75.63, while its price in Mumbai has gone up to Rs 82.40. Diesel prices have crossed Rs 80 per litre in at least eight cities.
Earlier this month, fuel prices had touched fresh record highs as both petrol and diesel were hiked by 25 paise. This is the third price hike in 20 days and the rates for petrol and diesel may go up if global oil prices rise any further.
But the primary reason behind high petrol and diesel prices in the country is the high rate of taxes. As global oil rates recover, the impact of high taxes on fuel in India is now being prominently felt by citizens.
The high rate of taxes on fuel may help in boosting the government’s revenue collection amid the ongoing economic crisis, but it also pushes up the inflation rate.
Any further rise in prices could also exert higher pressure on citizens. While many appeals have been made to the government to lower taxes on fuel, it is unlikely that rates will be lowered any time soon.
