After being steady for most of September, fuel prices increase 25-30 paise

Fuel prices touched record levels across the country on Thursday as rates went up by 25 to 30 paise. Petrol and diesel prices have been on the rise since the beginning of the year.

Petrol began the first quarter of FY 22 at 96.60/litre and diesel at Rs 80.91/litre in Delhi. By the end of the quarter, petrol prices stood at Rs 98.87 and that of diesel at Rs 89.23.

By the end of April,  petrol was at Rs 90.44 per litre, while diesel was retailing at at Rs 80.77 per litre a decline of  Rs 6.16 and 0.14 paise, respectively, from the beginning of the month.

In May, petrol prices increased by Rs 3.85 to 94.29 per litre, while diesel prices increased by Rs 4.44 to Rs 85.21 per litre.

In June beginning, petrol prices stood at Rs 94.55, an increase of 0.26 paise, and by the end of the month rose over Rs 4 and stood at Rs 98.87. On the other hand diesel prices stood at Rs 85.44, an increase of 23 paise, and by month end, the prices rose sharply by Rs 3.79, in the national capital to Rs 89.23.

Petrol prices hold steady in second quarter

The upward trend continued in the second quarter as petrol prices increased by Rs 3.03 from Rs 98.87 at the beginning of July to Rs 101.90 by the end of the month. Diesel prices opened with an incline of Rs 3.79 to Rs 89.23 by the end of the month. Fuel prices were the highest during July 15-31,

However, in August prices of petrol and diesel declined slightly, with petrol costing Rs 101.55 per litre and diesel costing Rs 88.98 per litre, a decrease of 0.35 paise and 0.25 paise, respectively, on back of lower crude prices in international market.

Fuel prices continued held steady for almost three weeks in September. As on September 21, petrol was at Rs. 101.39 and diesel at Rs 88.66 on September 21. However, from September 24, petrol prices increased by 0.50 paise and diesel prices have risen by Rs 1.21 per litre. Petrol and diesel prices are at Rs 101.64 and Rs 89.87 per litre.

The sudden surge comes on the back of international oil prices touching a three-year high, with Brent trading at  $78.64 per barrel. This has forced energy companies to draw more crude oil out of their stockpiles.

India relies on imports to meet 85% of its oil needs and so benchmarks local fuel rates to international oil prices.

Price build-up of petrol and diesel in Delhi

For petrol in Delhi, the overall retail selling price constitutes the base price (Rs 40.78), freight charge (Rs 0.32), price charged to dealers excluding VAT and excise duty (Rs 41.10), Excise duty (Rs 32.90), dealer commission (Rs 3.84), and VAT (Rs 23.35), which comes to a total of Rs 101.19.

Similarly, diesel prices constitute the base price (Rs 40.97), frieght (Rs 0.30), price charged to dealers excluding VAT and excise duty (Rs 41.27), excise duty (Rs 31.80), dealer commission (Rs 2.59) and VAT (Rs 12.96), which comes to a total of Rs 88.62.