NEW DELHI: Diesel, the fuel of choice for India’s road freight sector, crossed the Rs 100 per litre mark in Rajasthan’s Sri Ganganagar district on Saturday, while Karnataka became the seventh state to have petrol retailing at above the Rs 100 level.
Petrol diesel prices have been breaking all-time records on a nearly day-to-day basis over the previous month and if Goldman Sachs analysts are to be believed, Indian consumers are unlikely to get any relief, since crude oil rates are expected to continue rising over the summer to as much as $80 per barrel. Brent crude currently trades in the $71-72 per barrel range.
The impetus for diesel to breach the Rs 100 mark was given by Saturday’s price hike by government oil marketing companies.
Petrol and diesel prices were hiked by 27 paise per litre and 29 paise respectively.
This increase was the 23rd such instance since May began and prices have risen by Rs 5.72 per litre for petrol and Rs 6.25 a litre for diesel during this time.
After the latest hike, petrol prices in Delhi stand at Rs 96.12 a litre and diesel at Rs 86.98 per litre. In Sri Ganganagar, prices stood at Rs 107.22 a litre for petrol and Rs 100.05 for diesel.
Rajasthan levies the highest VAT on petrol and diesel in the country, followed by Madhya Pradesh, Maharashtra, Andhra Pradesh, and Telangana.
Fuel retail rates in India largely comprises central and state taxes, accounting for 60 per cent of the selling prices.