Petrol And Diesel Prices Touch Record High – 5 Things You Should Know To Stay Alert!

This brutal attack was something which the middle-class Indian had least expected, especially when general elections are just a year ahead.

Prices of petrol and diesel have hit a record high all across the nation, and a state of chaos has been unleashed.

At a time when an average Indian needs to spend 20% of his daily income on petrol, then this steep rise in prices is indeed a big worry.

Here are 5 things every vehicle owner in India should be aware of, regarding this price increase of fuel:

Fact One: This Rise Is Unprecedented, And Consistent

Today, that is May 22, 2018, is the 9th consecutive day of price rise of petrol and diesel, all across India. At the time of writing, prices of petrol were raised by Rs 2.24 a litre and prices of diesel were raised by Rs 2.15 a litre in Delhi.

Here are the current fuel prices across India:

City	Petrol	Diesel
Delhi	76.57	68.08
Kolkata	79.24	70.63
Mumbai	84.4	72.48
Chennai	79.47	71.87

If we track the price rise since last 7 days, then the increase is gradual, and consistent.

Fact Two: How High Are The Petrol And Diesel Prices?

In the last 16 years, Rs 76.06 per litre is the highest recorded price of petrol in Delhi, which happened on September 14, 2013. This means that if we compare the price of petrol since last 16 years, then the record has already been broken.

The current trend of the high price of petrol started on May 14th, when it reached Rs 74.8.

On the other hand, the price of diesel was recorded at max on April, 2018 when it hit Rs 65.93 in Delhi.

Fact Three: Where Is The Fuel Most Costly?

Mumbai is the place where the price of petrol has become the highest in India. As on May 22, the price of petrol in Mumbai is Rs 83.16/Litre, which is the highest. At #2 is Bhopal, where petrol is priced at Rs 80.89. Patna is at #3 with a price of Rs 80.82 per litre.

Port Blair is the place where you can get the cheapest petrol at Rs 64.9 per litre. Panjim and Agartala are the cities where petrol is 2nd and 3rd cheapest at Rs 69.41 and Rs 71.14 per litre.

If we talk about diesel, then the most expensive city to buy it right now is Hyderabad at Rs 72.60 per litre, followed by Trivandrum at Rs 72.51 per litre and Mumbai at Rs 72.48.

Aizwal, Itanagar and Port Blair are the locations with the cheapest diesel.

Fact Four: Why Is The Price Increasing?

There are mainly 2 reasons for the record breaking prices of petrol and diesel:

1. Price of crude oil has increased globally, which has triggered high fuel prices, everywhere.
2. Weak rupee against dollar, which has been a trend since last few weeks.

Now, the price of crude oil has increased, because Organization of the Petroleum Exporting Countries (OPEC) has reduced their daily production.

And rupees is weak against the dollar, which is also partially due to this same high cost of crude oil.

Fact Five: Is Tax Also The Reason For High Prices?

Yes, partially.

As of now, we are paying 21.3% as VAT on each litre of petrol, whereas 25.9% is the Excise Duty on the import. Combined this with 4.8% as average commission of the dealer, we are paying almost 50% more than what is the actual price of petrol, right out of the refinery.

These numbers are only for petrol. For diesel, these becomes somewhat less.

Govt. has assured that they will look into this issue, and do everything possible to lessen the burden on the common man.

Oil Minister Dharmendra Pradhan said,

“The Centre is sensitive towards the rising fuel prices. Various alternatives are being explored. I hope something will work out soon,”

We will keep you updated, as we receive more news.