By- Dikhyaa Mohanty
Hike on petrol and diesel prices(Petrol And Diesel Prices Hiked With 16th Consecutive Days) have become more expensive for the common man with oil marketing companies increasing pump prices. Within 16 days Petrol price was hiked by 33 paise per litre and diesel by 58 paise all again.
Rates of petrol and diesel(Petrol And Diesel Prices Hiked With 16th Consecutive Days) have been increased across the country and this hike has been a major dilemma for the common civilians especially in the current scenario. The rates vary from state to state depending on the incidence of local sales tax and value-added tax (VAT).
This has seen prices of diesel and petrol(Petrol And Diesel Prices Hiked With 16th Consecutive Days) glides to all-new highs and in fact a two-year high. In an effort to inflate revenues during the nationwide lockdown, several state governments raised taxes inflicted on transportation fuel.
On 14th March, the Government hiked excise duty on petrol and diesel by ₹3 per litre each and then again on May 5 by a record ₹10 per litre in case of petrol and ₹13 on diesel.
Even Prices of transportation fuel were also reviewed under the dynamic pricing policy and there were few cases of price hike only when the respective state governments hiked VAT or cess.
The increase in retail price under daily price revision would largely depend on predominating oil prices and the global oil market(Petrol And Diesel Prices Hiked With 16th Consecutive Days) at the time.
The state-owned oil companies such as Indian Oil Corporation Ltd., Bharat Petroleum Corporation Ltd., and Hindustan Petroleum Corporation Ltd., adjusted the petroleum prices against the fall in the retail rates, instead of passing on the excise duty hikes to customers because of fall in international oil prices to a two-decade low.
The fuel price would continue to be hiked for the next few days as the oil companies are incurring huge losses and it’s important for them to cover up the losses with the recovery in crude oil rates.