Petrol, Diesel Prices Hit Another Record High On June 12

Petrol and diesel prices in Indian cities hit another record high on June 12, even as the opening-up of lockdowns is going to pinch the pockets of consumers.

In New Delhi, petrol was retailing at Rs 96.12, up 0.29 paise over rates on June 11. In Mumbai, petrol prices hit another record high of Rs 102.30 on June 12, as compared to Rs 102.04 on June 11, 2021.

Petrol and diesel rates today on June 12, 2021

	Petrol	Diesel
New Delhi	96.12	86.98
Kolkata	96.06	89.83
Mumbai	102.30	94.39
Chennai	97.43	91.64
Gurgaon	93.74	87.42
Noida	93.58	87.57
Bangalore	99.33	92.21
Bubaneshwar	96.87	94.79
Hyderabad	99.90	94.82
Jaipur	102.73	95.92
Lucknow	93.40	87.42
Patna	98.68	92.73
Trivandrum	98	93.33

Bulk of the petrol rates and diesel rates today are because of excise

Petrol and diesel rates in the country continue to remain high on account of high excise rates. When global crude oil prices fall, the government hikes the excise rates to mop up additional revenues. However, when the prices rise, they relent to bring down excise. Take a look at the break-up here below in Delhi.

Price build-up of petrol in Delhi

Elements	Unit	Delhi
Base price	Rs/litre	Rs 35.63
Freight etc	Rs/litre	Rs 0.36
Price charged to dealers	Rs/litre	Rs 35.99
Add: Excise duty	Rs/litre	Rs 32.90
Dealer commission	Rs/litre	Rs 3.79
VAT	Rs/litre	Rs 21.81
Retailing selling price in Delhi	Rs/litre	Rs 94.49

As can be seen from the above table, the entire high costs of petrol is on account of excise and VAT. Similar is the case with diesel.

If the trend of global crude prices going higher continue, the government would be forced to reduce the excise on both petrol and diesel. However, so far it has not considered the same. With prices soaring to record highs, it maybe high time, the government consider reducing the same.