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Petrol, diesel price today, 17 Feb 2021: What is the reason behind fuel price hike in India?
Oil marketing companies calculate fuel prices in different states across the country based on differential Value Added Tax
Petrol and diesel price have reached record highs in India with petrol rising another 2 paise, nearly touching Rs 90 per litre in Delhi (Rs 89.54 per litre), while price of diesel breached the Rs 79-mark (Rs 79.95 per litre) on Wednesday. Fuel prices have been incessantly rising for more than a week now with no respite. It must be noted that except for Delhi, petrol prices have crossed the Rs 90-mark in all metro cities.
In Mumbai too, petrol price today inched closer to touching a three-digit figure, reaching an all-new high of Rs 95.75 per litre. Meanwhile, diesel in Mumbai costs Rs 86.98 as per this morning.
Oil marketing companies calculate fuel prices in different states across the country based on differential Value Added Tax (VAT) levied by the state governments. In the last seven days, the price has gone up by Rs 2.31 per litre for petrol while diesel rate has risen by Rs 3.16 a litre.
These are the fuel prices in major cities:
Reason behind diesel, petrol price hike
The current price rise is largely on account of steep increase in central taxes of petrol and diesel and firm crude prices. The Budget 2021 has also imposed a new agriculture infrastructure and development cess. However, petroleum minister Dharmendra Pradhan has ruled out any cut in duty on petroleum products.
Petrol and diesel prices have increased 19 times in 2021 with the two auto fuels increasing by Rs 5.28 and Rs 5.48 per litre respectively so far this year.