Petrol, diesel price at fresh high; oil companies say only tax cut by govt can help
NEW DELHI: Petrol and diesel prices on Thursday climbed to fresh highs in the country as rates were hiked by the most in recent times, even as fuel retailers said the government can cut taxes to ease consumer burden.
Petrol and diesel price was hiked by 35 paise per litre each after a gap of a week, according to price notification of state-owned fuel retailers.
The increase took petrol prices to a fresh high of Rs 86.65 a litre in Delhi and to Rs 93.20 in Mumbai. Diesel rates touched Rs 76.83 in Mumbai and an all-time high of Rs 83.67.
Mukesh Kumar Surana, head of India’s third-largest fuel retailer Hindustan Petroleum Corporation Ltd (HPCL), said there has been a sudden spike in international oil prices to $59 per barrel in the last 2-3 days because of a perception of mismatch in demand and supply as well as cut in production by Saudi.
Retail prices are arrived at by adding central and state taxes and dealer commission to the benchmark cost of production.
He said only 25-30 per cent of the retail pump rates are dependent on international benchmark cost and the rest are central and state taxes.
