Petrol price reached a record high of Rs 81.05 per litre and diesel climbed to its highest ever level of Rs 73.93 at Thiruvananthapuram. Compared to yesterday the petrol price was increased by 31 Paise / Litre and diesel 27 Paise / Litre. It is the highest price marked after resuming daily revision of fuel prices. Petrol prices has crossed Rs 80 in many places. Rates vary from state to state depending on the incidence of local sales tax or VAT.
The petrol and diesel prices continue to rise as oil companies passed on four weeks of relentless rise in international oil prices to consumers.
Union government has raised excise duty on petrol and diesel nine times after Narendra Modi came into power. Excise duty on petrol and diesel has been hiked by Rs 11.77 and Rs 13.47 respectively in 2014. Meanwhile, only Rs 2 is decreased from fuel prices in 2016.
Although the prices have increased, the central and state government have shown no inclination to cut the tariffs to ease the burden on the common people. The central government roughly earns Rs 19.48 as excise and customs duties from a litre of petrol and Rs 15.33 from diesel. The state government earns Rs 18.89 per litre of petrol and Rs 14.58 from diesel. Out of the Rs 80 paid by the ordinary folks for a litre of petrol, Rs 38.37 will go to central and state governments.