Petrol and diesel prices have gone up by Rs 9.17 and 11.14 per litre respectively between June 6 and July 3 in Delhi. An HT analysis published on June 24 showed that the gap between retail prices in Delhi and international crude price reached an all-time high in March 2020; this still continues to be significantly higher than pre-pandemic levels. This is because of an increase in taxes on petrol and diesel. Between April 1 and July 1, the share of central and state taxes in petrol and diesel prices in Delhi increased from 45% to 63% for diesel and 54% to 64% for petrol. Central taxes per litre are almost twice state taxes. And while fuel prices vary across states, the trend across India is pretty much the same.
As is to be expected, the tax-driven hike in petrol-diesel prices has become a political issue. The Congress and other opposition parties are demanding a reduction in taxes.
