Fuel prices touch new highs as price rise for 8th consecutive day

Retail fuel prices climbed again for the eighth consecutive day reaching new highs on February 16 in cities across the country.

The petrol price in Delhi was hiked by 30 paise reaching Rs. 89.29 per litre as compared to Rs 88.99 per litre on February 15, according to state-owned fuel retailers. Diesel price in the national capital also touched a new high at Rs 79.70, increasing 35 paise from the previous day.

It is important to note that the base prices of petrol and diesel today are Rs. 31.82 and 33.46 respectively. Excise duty, freight, VAT and dealer commission are added to this price to determine the retail price of the fuel.
In Mumbai, the prices rose to Rs 95.75 per litre and Rs 86.72 per litre for petrol and diesel respectively.

Meanwhile, automobile owners in Chennai shell out Rs 91.45 per litre and Rs 84.77 per litre of petrol and diesel. The prices in Kolkata reach Rs 90.54 per litre for petrol and Rs 83.29 per litre for diesel.

The difference in prices in states stem from local and VAT taxes imposed in states. Oil Minister Dharmendra Pradhan had ruled out the possibility of a reduction in taxes on petrol and diesel in order to reduce prices.

"There is no such proposal at present," he said in Rajya Sabha. He added that taxes are increased or decreased depending on several factors like the requirement of the government and market situation.