There appears to be no end to consumers’ woes from the brunt of high fuel prices nationwide, with the price of diesel touching a lifetime high of Rs 59.14 per litre in capital Delhi on Tuesday. The scenario is no better in other metros where diesel prices have zoomed to their peak levels. Price of one litre of diesel stood at Rs 61.80 in Kolkata, its highest in three years.
Diesel prices continue to sting consumers elsewhere around the country as well, with costs soaring to Rs 62.82 per litre in Mumbai and Rs 62.30 per litre in Chennai, corresponding to their highest levels since May and January, respectively.
The prices are based on data put out by state-owned Indian Oil on its website. Life-time highs correspond to 2002-levels, the last set of data available on IOC's website.
Diesel prices had touched all-time highs in Kolkata, Mumbai and Chennai in August 2014.
Also Read: Petrol, Diesel under GST: In politics vs economics, govt walking a tight rope
The consistent rise in fuel prices will continue to pinch the common man, especially those either using diesel vehicles or farmers and consumers who are dependent on diesel-generated power. The development follows remarks by Oil minister Dharmendra Pradhan suggesting that crude prices would drop soon and there would be reprieve for the common man.
However, the situation has been anything but that. Even in terms of petrol prices, consumers across most Indian cities continue to reel under the price onslaught, primarily due to the high taxes the Centre and states collectively levy in the form of central excise duty and VAT.
At Rs 79.99 per litre, price of petrol is at its highest since August 2014 in Mumbai. Petrol prices in Mumbai had touched a high of Rs 83.62 per litre in September 2013.
In Delhi, Chennai and Kolkata, petrol prices are hovering at their peaks since January this year. Since July 1, prices have risen by Rs 7.79 per litre for petrol and Rs 5.81 per litre for petrol and diesel, respectively.
The government has attributed much of this rise to international crude oil prices which have risen following the two successive hurricanes that curtailed much of production in the US. Also affecting the price movement is the strong international demand that has led to a spike in crude prices. Crude prices have jumped nearly 12 per cent between September 1 and September 25 to reach $59 a barrel before slipping to $56 on Monday.
However, much of the common man’s pain can be attributed to the taxes that state and central governments levy on petroleum products. As a result, consumers continued to pay high prices despite a steep decline in crude oil prices from the 2014 levels.
