After holding fuel prices stable for a day, state-run oil marketing companies (OMCs) increased the rates on Tuesday. Petrol and diesel prices have jumped by 28 and 26 paise, respectively.
Following today's hike in fuel price, both petrol and diesel are selling at new record highs.
In Delhi, the retail price of petrol has risen to Rs 97.50 per litre, while diesel now costs Rs 88.23 per litre. In Mumbai, the retail price of petrol is approaching Rs 104 per litre, while the retail price of diesel is Rs 95.72 per litre.
Since May 4, fuel prices have hiked by at least Rs 7 per litre in 29 increases. In several places, petrol prices have already surpassed Rs 100 per litre. Petrol was selling for more than Rs 100 per litre in at least 15 cities as of Friday.
Diesel prices have already surpassed Rs 100 in Rajasthan's Sri Ganganagar, and if present trends continue, more big cities may soon follow suit.
It should be noted that when global crude oil prices rise, OMCs have raised fuel costs on a regular basis. Economists, on the other hand, are concerned that the continuing rise in domestic fuel costs would hinder the economic recovery.
Fuel price hikes have already sparked a period of inflation, and the cost of several basic items have risen substantially as a result. Higher fuel prices, in addition to inflation, are expected to stymie demand, slowing overall economic growth.
Experts believe that the only way to cut fuel costs at the moment is for the government to eliminate excessive taxes. It should be noted that the country has the highest fuel taxes in the world, accounting for 60% of the retail price of petrol and 54% of the retail price of diesel.
Fuel Price Hike in India's Major Cities
City Petrol (per litre) Diesel (per litre)
New Delhi Rs 97.50 Rs 88.23
Mumbai Rs 103.63 Rs 95.72
Kolkata Rs 97.38 Rs 91.08
Chennai Rs 98.65 Rs 92.83
Dharmendra Pradhan, Union Minister for Petroleum, Natural Gas, and Steel, stated on June 13 that fuel prices cannot be reduced since the government is conserving money to spend on welfare programmes.
However, the government has indicated that it is unable to decrease fuel taxes at this time because to increasing expenditures during the second wave of the Covid-19 wave. It simply indicates that citizens may be forced to bear the burden of high fuel costs for an extended length of time.