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
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
|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|
|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.