Fuel prices in India were unchanged for the seventh straight day on 6 March.
Petrol prices per litre stayed at Rs 91.17 in New Delhi, Rs 91.35 in Kolkata, Rs 97.57 in Mumbai and Rs 93.11 in Chennai.
Diesel prices per litre were stagnant at Rs 81.47 in New Delhi, Rs 84.35 in Kolkata, Rs 88.60 in Mumbai and Rs 86.45 in Chennai.
Rates are currently at all-time highs. These rates are revised on a daily basis by oil marketing companies in line with changes in the international prices and the rupee's exchange rate. Oil prices have been on a rise since January on optimism in the global economy in hopes for improving fuel demand as vaccines are rolled out.
Brent crude futures, the international benchmark for oil prices, rose $2.62, or 3.9%, to settle at $69.36 a barrel, its highest level since January 2020.
A stronger-than-expected US jobs report and a decision by OPEC and its allies not to increase supply in April pushed oil prices to their highest level in more than a year.
However, in India, taxes make for a significant chunk of the final price paid by consumers on fuel. While, central excise duty alone makes up for 39% of the petrol price and 42.5% of diesel price, state and local taxes pile on to this burden. At present, of the retail price paid by consumers in India at fuel stations, roughly 60% of the retail price accounts for taxes.
The surge in oil prices and high central, as well as state taxes, have pushed the price of petrol in certain regions past Rs 100 per litre.
As per an ANI report this week, the Finance Ministry vigorously started to discuss the issue which has created a hole in consumers' pockets.
"The government is discussing as to what extent the taxes could be cut, and that too, without having much stress on either the Centre or the state government. The discussion has been started among the Ministry officials on how to bring the Centre and government on a platform where relief from high fuel prices can be given to the common man," highly placed sources told ANI.