Fuel prices on a roll but no hint of any government tax cut
NEW DELHI: Petrol price remained on a roll, claiming a new peak at Rs 84.70 a litre in the national capital and 2 paise short of its all-time high of Rs 91.07 in the country’s financial capital Mumbai on Thursday.
Diesel price too rose as retailers continued to pass on the staggered impact of crude’s week-long rally. After the latest hike, diesel cost Rs 74.88 a litre in Delhi and Rs 81.60 in Mumbai.
While consumers continued to pay through their nose, there was no sign the Centre or state governments were considering any reduction in the hefty taxes they levy on motor fuels, which amp up the impact of rising crude. In Delhi, for example, consumers pay Rs 32.98 as excise duty on each litre of petrol and Rs 31.83 on diesel. VAT amounts to Rs 19.32 on petrol and Rs 10.85 on diesel.
The only hope for consumers, it seems, lies in a correction in the global oil market, which saw benchmark Brent easing to $55.64 a barrel, down from $57 days ago.
Reports of lockdown following fresh virus surge in parts of China, the world’s second-largest oil consumer, and extended Covid-19 curbs in Europe on fresh scare tempered market sentiment that was buoyed by vaccine rollouts and Saudi offer to cut production by an additional million barrels a day.
