Petrol price climbed to Rs 84.20 a litre in the national capital on Thursday. This marks the highest ever price at which petrol has been sold in New Delhi, surpassing the earlier high of Rs 82 a litre that was recorded on October 4, 2018.
Oil companies had hiked the price of Petrol by 23 paise per litre and diesel by 26 paise a litre on Thursday. After the hikes, diesel is sold at Rs 74.38 a litre in Delhi.
In Mumbai, petrol was sold at Rs 90.83 a litre and diesel for Rs 81.07 a litre. This is the highest ever price at which diesel has been sold in Mumbai.
Petrol price in Delhi was kept just below the record highs at Rs 83.71 a litre from December 8, 2020 onwards. The price of petrol a year ago in Delhi on January 7, 2020 was Rs 75.74 a litre, and this price has inched up over the year.
The price of diesel in Mumbai was kept unchanged from December 7, 2020 at Rs 80.51 a litre, also marginally lower than the all-time high.
A year ago, diesel sold at Rs 72.14 a litre on January 7, 2020 in Mumbai.
Auto fuel prices in India are higher because of significant taxes levied by the centre and state governments. On an average, around 60 per cent of the retail price of petrol and diesel in the country is made up of taxes. This quantum varies marginally as per the method adopted and quantum of state levies on petrol and diesel.
The excise duty on petrol is Rs 32.98 a litre and the state government levied value added taxes is around Rs 19.32 a litre in Delhi. On diesel, the centre rakes in Rs 31.83 a litre through excise duty which the Delhi government corners around Rs 10.85 a litre.
Petrol and diesel prices are revised everyday by oil marketing companies in the country. These prices are calculated based on price movements in the international market for comparable grades of fuel. Globally, the recovery in crude oil and petroleum product prices is on the back of optimism of the COVID-19 vaccine rollout and expectations of demand recovery in 2021.