With state-run oil marketing companies (OMCs) raising the local prices of petrol and diesel across major cities of the country, prices have touched the new records on Wednesday.
According to the Indian Oil Corporation (IOCL), petrol rates have climbed to Rs 86.30 per lire, while diesel stood at Rs 76.48 per litre in the national capital on January 27.
The trade circles are rife with the blame games while the hiking international crude oil prices added up to the Centre’s high excise duty and state’s value-added tax (VAT), which have spiked fuel prices in the country. With Saudi Arabia, the world’s largest oil producer reducing production, the global crude oil prices have risen.
It can be noted that during the current financial year, taxes on petrol and diesel were raised by Rs 13 and Rs 16, respectively, in the form of special additional excise duty and road and infrastructure. Currently, taxes comprise about 60 per cent of the fuels’ retail prices.