India’s fuel prices reach record high levels, consumers worried

India’s fuel prices reach record high levels, consumers worried

India's fuel prices reach record high levels, consumers worried

an hour ago

A worker cleans a pump at a fuel station in Ahmedabad, India. File/Reuters

Fuel prices in India reached record-high levels making customers worried on Wednesday. According to the Indian Oil Corporation Limited (IOCL), petrol rates have climbed to Rs86.30 per lire, while diesel stood at Rs76.48 per litre in New Delhi. In Mumbai, diesel price touched a record high of Rs83.30 a litre, while petrol price jumped to Rs92.86 a litre.

The central government's high excise duty and state's value added tax (VAT) have spiked fuel prices in the country. The hike in fuel prices in the recent past is set to increase the adoption of compressed natural gas (CNG)-driven vehicles, Crisil Research said.

Accordingly, the last time petrol prices had crossed the Rs80 per litre mark was in October 2018, when Brent crude had surged to $80.5 per barrel.

In contrast, the price has now touched an all-time high of Rs85.2 per litre in New Delhi even though Brent has slid to $55 per barrel.

The increase is due to higher excise duty, which rose by Rs13 to Rs32.98 per litre in 2020 and value added tax.

"Tax now accounts for over 60