Petrol and diesel prices in the country rose again sharply by 28 paise and 31 paise per litre respectively, on Friday as Oil Marketing Companies (OMCs) continued to cover for their losses on holding back price rise for the past 18 days due to state elections. With this hike, Petrol price scaled to Rs 102 per litre in some parts of Rajasthan and Madhya Pradesh after rates were raised for the fourth straight day after ending of more than a two-week-long hiatus during assembly elections in states like West Bengal.
This took the price of petrol in Delhi to Rs 91.27 per litre and that of diesel to Rs 81.73. In Sri Ganganagar district of Rajasthan, petrol touched Rs 102.15 a litre, prices from oil companies showed.
In Anuppur of Madhya Pradesh, petrol now costs Rs 101.86 while it is priced at Rs 99.95 a litre in Parbhani, Maharashtra. This is the second time this year that rates in some parts have crossed the Rs 100 mark - they had breached the physiological mark for the first time in mid-February.
Fuel prices differ from state to state depending on the incidence of local taxes such as VAT and freight charges. Rajasthan levies the highest value-added tax (VAT) on petrol in the country, followed by Madhya Pradesh.
Friday was the fourth straight day when prices of petrol and diesel were hiked since state-owned fuel retailers ended an 18-day hiatus in rate revision during assembly elections.
In four days, petrol price has increased by 88 paise per litre and diesel by Re 1 - neutralising all of the reduction that came between March 24 and April 15.
After raising petrol price by a record Rs 21.58 per litre and diesel by Rs 19.18 since the government raised excise duty to an all-time high in March last year, state-owned fuel retailers -- IOC, BPCL and HPCL -- had reduced petrol price by 67 paise a litre and diesel by 74 paise per litre effected between March 24 and April 15.
Oil companies, who have in recent months resorted to unexplained freeze in rate revision, had hit a pause button after cutting prices marginally on April 15. This coincided with electioneering hitting peak to elect new governments in five states including West Bengal.
No sooner had voting ended, oil companies indicated an impending increase in retail prices in view of firming trends in international oil markets. They said prices have been on a continuous uptrend since April 27. Crude oil price is hovering near USD 70 per barrel mark.
Central and state taxes make up for 60 per cent of the retail selling price of petrol and over 54 per cent of diesel. The union government levies Rs 32.90 per litre of excise duty on petrol and Rs 31.80 on diesel.
In Mumbai, the petrol price was hiked to Rs 97.61 a litre on Friday from Rs 97.34, while diesel rates were increased to Rs 88.82 from Rs 88.49, the price notification showed.
Branded or additive-laced petrol, which attracts higher taxes, is at record high in places with higher taxes.
In Sriganganagar, such petrol comes for Rs 105.43 a litre while similar grade diesel is priced at Rs 98.05 a litre. Regular diesel costs Rs 94.38 a litre in Sriganganagar.
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