New Delhi: The price of petrol on Monday increased to Rs 80.43 (hike of Re 0.05) and that of diesel increased to Rs 80.53 (hike of Re 0.13) in Delhi, a day after there was no change in the rates in the national capital.
Oil marketing companies have been adjusting retail rates in line with costs after an 82-day break from rate revision amidst the COVID-19 pandemic. These firms on June 7 restarted revising prices in line with costs.
Also read: Know why petrol, diesel prices are rising
The Congress party had termed the increase in the price of petrol and diesel as "unjust" and "thoughtless", and urged the central government to roll back the increase with immediate effect and pass on the benefit of low oil prices directly to the people.
Before the country entered the lockdown, the average price of petrol and diesel in Delhi was Rs 69.60 per litre and Rs 62.30 per litre, respectively.
From the beginning of June 2020, petrol and diesel prices are on a continuous hike. In 19 straight days, petrol price has been raised on 18 occasions since June 7 and now totals to Rs 8.66 a litre. Similarly, diesel price has gone up by Rs 10.63 per litre.
There can be various reasons for the price increase:
1. Crude oil Prices: Fluctuations in crude oil prices globally would impact the prices in India as well as India imports over 80 percent of its crude oil requirements
2. Increase in Tax: In the last two months, both the Centre and the State have increased the taxes levied on petrol and diesel.
3. Oil marketing companies passing hike to consumers: After the 2nd excise duty hike in May Oil Marketing companies (OMCs) passed on the increase in rates to the consumers leading to the continuous fuel price hike in the month of June.
ANI report
