On Sunday, diesel price broke all records after being hiked by 60 paise per litre. At the same time petrol price was up by 35 paise. Cumulatively, the fuels saw an increase in rates to rupees 8.88 per litre and rupees 7.97 per litre respectively.
In the country’s capital, petrol and diesel were high to rupees 79.23 per litre and Rs. 78.27 per litre respectively. Previously petrol was priced at rupees 78.88 while diesel was at rupees 77.67 per litre. The increase in prices can be seen throughout the country. However, the magnitude varies from state to state based on the the incidence of of local tax or VAT. Taxes account for nearly two third of the current selling price.
64% of the total price of petrol is due to taxes. Rupees 32.98 is for central excise duty e and rupees 17.71 is local sales tax, totalling to rupees 50. 69. The case is somewhat similar with diesel as well. More than 63 % of the retail selling price of the fuel accounts for taxes. Rupees 31.83 is due to central excise and rupees 17.60 is due to VAT, amounting to a total of a tax incidence of rupees 49.43 per litre.
The consecutive 15th day rally since June 7 has taken diesel prices to set new records whereas petrol is at a 2 year high. The release started since the oil companies begin revising prices in line with costs after finishing an 82 day hiatus in the rate revision. Indian oil corporation, Bharat petroleum corp limited and Hindustan petroleum corp limited arandi oil public sector units that have adjusted themselves against the dip in the retail rates due to a decline in international oil prices.