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Excise duty was raised in May last year to record ₹37.38 per litre; the same for diesel was hiked to Rs 31.80 per litre
Petrol prices were raised for the seventh day in a row on Tuesday (November 2). According to data from the Indian Oil Corporation (IOL) website, petrol prices in Delhi were hiked by 35 paise per litre. State-run oil marketing corporations (OMCs), however, have kept diesel prices unchanged across the country.
With the latest hike, the effective price rise in petrol since May 5, 2020, is a massive Rs 38.78 a litre. The cumulative hike in diesel prices in the same period is by Rs 29.03.
On May 5, 2020 the government decided to raise excise duty to a record Rs 37.38 per litre. The same for diesel was hiked to Rs 31.80 per litre.
As on May 5, the petrol price in Delhi stood at Rs 71.26 a litre (current prices Rs 110.04 per litre), while the diesel rate was Rs 69.39 in Delhi (current price Rs 98.42 per litre).
The government’s collection from levy of excise duty on petroleum products has risen 33% in the first six months of the current fiscal, according to data available with the Controller General of Accounts.
Natural gas
Natural gas and crude oil prices have soared by roughly 14% each in the last month. On the back of strong demand and restricted supply, oil has risen 63.5% since the beginning of the year, reaching a seven-year high.
The recent round of raises has been linked mostly to the international market’s soaring Brent crude oil price. Oil prices hit multi-year highs last week, boosted by a post-pandemic resurgence in demand and the Organization of Petroleum Exporting Countries (OPEC decision )’s to maintain a monthly production rise despite increased demand from key customers.