Petrol and diesel prices have been increased by 28 paise and 26 paise, respectively. Both auto fuels are retailing at fresh record high levels after today’s hike.
Petrol price has increased to Rs 97.50 per litre in Delhi and diesel is retailing at Rs 88.23 per litre. In Mumbai, petrol’s retail price is inching closer to Rs 104 per litre and diesel costs Rs 95.72 per litre.
Fuel prices have been increased by at least Rs 7 per litre in 29 hikes since May 4. Petrol rates have already crossed Rs 100 per litre in many cities. As of Friday, petrol was retailing over Rs 100 per litre in at least 15 cities.
Diesel price has also crossed Rs 100 in Rajasthan’s Sri Ganganagar and may cross the century-mark soon in other major cities if the current trend continues.
It may be noted that OMCs are hiking fuel prices on a daily basis due to rising international crude oil prices. However, economists are worried that the continuous rise in domestic fuel prices will ultimately hurt the economic recovery.
The high fuel prices have already triggered a period of inflation and rates of many essential commodities have increased sharply as a result. Not just inflation but the higher fuel prices are also likely to stall demand — something that may slow down overall economic recovery.
Experts suggest that the only way to bring down fuel prices at the moment is by cutting high taxes levied by the government. It may be noted that the taxes levied on fuel in the country are the highest in the world, comprising 60 per cent of petrol’s retail price and 54 per cent of diesel.
However, the government has signalled that it is not in a position to reduce taxes on fuel at the moment due to increased expenses during the second wave of the Covid-19 wave. It essentially means that citizens may have the bear the burden of high fuel prices for a longer period.