Petrol, diesel prices rise for ninth straight day now; check fuel prices in Delhi, Mumbai, other cities

Petrol and diesel prices in India rose for the ninth day in a row today, making retail fuel costlier by nearly Rs 5 per litre since June 7. Petrol price rose by 48 paise per litre while diesel price rose by 23 paise per litre on June 15. After the surge in prices, petrol price in Delhi is now at Rs 76.26 per litre and diesel price is at Rs 74.26 a litre, according to IOCL. Financial Express Online had reported on June 9 that the surge in petrol and diesel prices may get steeper and the prices may further rise by Rs 5-6 per litre in a week as the effect of weak rupee couples with the rising crude oil prices.

The fuel price is rising due to the additional duty that the government had imposed on petrol and diesel, to offset the revenue loss caused by the pandemic by taking advantage of low crude prices. However, now when the crude prices are recovering to pre-corona levels, the additional duty on fuel has not been readjusted, forcing consumers to bear the pain of high retail prices of fuel. Further, the weak rupee is adding more pain as the imports get expensive.

In Mumbai, Kolkata, and Chennai, petrol prices per litre are Rs 83.17, Rs 78.10, and Rs 79.96 respectively, while diesel prices are Rs 73.21, Rs 70.33, Rs 72.69 respectively, according to IOCL. Even as the international crude oil prices are yet to touch the pre-corona levels, the retail prices of petrol and diesel have surpassed the pre-corona levels with a significant margin. Surprisingly, despite the high fuel prices, the Madhya Pradesh government imposed corona tax of Re 1 on petrol and diesel.

Periods of low fuel prices represent an opportunity to pursue pricing reforms, but the overriding economic priority for policymakers so far in 2020 has been to limit the damage from the coronavirus crisis. Energy subsidy reform remains an important but difficult political challenge, but the prospects for building better after the global crisis are inextricably linked with getting price signals right, especially if subsidy reform is combined with a broader suite of policy measures aiming at more robust, secure and sustainable energy sectors, said International Energy Agency (IEA).

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