For the first time ever, the price of petrol reached Rs 89.88 in Delhi on Thursday after fuel rates were hiked for the tenth day in a row. Petrol and diesel prices were increased by 32-34 paise per litre across metros, according to a price notification of state-owned fuel retailers.

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Fuel prices differ from state to state depending on the incidence of local taxes such as VAT and freight charges. After Thursday’s price increase, diesel in Delhi costs Rs 80.27 per litre.

In Mumbai, petrol price rose to Rs 96.32 a litre and diesel was priced at Rs 87.32.

Central and state taxes make up for 60 percent of the retail selling price of petrol and over 54 percent of diesel. The union government levies Rs 32.90 per litre of excise duty on petrol and Rs 31.80 a litre on diesel.

On Wednesday, Prime Minister Narendra Modi said that the middle-class would not have been burdened if the previous governments had focussed on reducing India's energy import dependence. Without referring to the relentless increase in retail fuel prices, which are linked to international rates, he said India imported over 85 per cent of its oil needs in the 2019-20 financial year and nearly 53 percent of its gas requirement.

Since India imports the majority of its oil needs, retail rates are benchmarked to international prices, which have spiralled in recent weeks.

Globally, oil prices rose as much as a dollar on Thursday, extending this week’s gains and hitting 13-month highs, as a cold snap sweeping Texas and surrounding regions shut at least a fifth of US refining output and a million barrels of crude production, according to news agency Reuters.

First Published:Feb 18, 2021 8:26 AM IST