Big shock for common man: Petrol hiked by 80 paise, LPG hiked by Rs 50

Petrol and diesel prices on Wednesday were hiked by 80 paise a litre each for the second day in a row since the ending of an over four-and-half month hiatus in rate revision. Big shock for common man: Petrol hiked by 80 paise, LPG hiked by Rs 50.

Petrol in Delhi will now cost Rs 97.01 per litre as against Rs 96.21 previously while diesel rate has gone up from Rs 87.47 per litre to Rs 88.27, according to a price notification of state fuel retailers. A record 137-day hiatus in rate revision ended on March 22 with an 80 paise per litre increase in rates.

Prices had been on a freeze since November 4 ahead of the Assembly elections in states like Uttar Pradesh and Punjab, a period during which the cost of raw material (crude oil) soared by USD 30 per barrel. Oil companies are now recouping the losses.

According to CRISIL Research, a hike of Rs 15-20 per litre is required to fully pass the increase in international oil prices. India is 85 per cent dependent on imports to meet its oil needs. On Tuesday, petrol and diesel prices were hiked by 80 paise a litre each, while the domestic cooking gas (LPG) price was hiked by Rs 50 per cylinder in line with a spike in international energy prices.

With this, a 14.2-kg non-subsidised LPG cylinder will now cost Rs 949.50 in the national capital. Since June 2017, petrol and prices are to be adjusted daily in line with the benchmark international rate in the preceding 15 days. But rates have been on the freeze since November 4, 2021.

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Just after the Narendra Modi government cut excise duty on petrol by Rs 5 per litre and that on diesel by Rs 10 a litre to bring down rates from record-high levels. Most state governments too lowered local sales tax or VAT. Before these tax reductions, petrol price had touched an all-time high of Rs 110.04 a litre and diesel came for Rs 98.42.