Petrol and diesel have become costlier by ₹3 per litre each. In Delhi, petrol will now be available at ₹97.77 per litre, while diesel prices have risen to ₹90.67 per litre. The new rates came into effect from today, May 15. This is the first fuel price hike in more than four years.
Along with petrol and diesel prices, CNG has also become costlier by up to ₹2 per kg in major cities. In Delhi, consumers will now have to pay ₹79.09 for one kilogram of CNG.
New petrol prices in metropolitan cities
Petrol and diesel prices before the hike
Why have petrol prices increased?
The main reason behind the hike is fluctuations in crude oil prices in the international market. Before the Iran-US war began, crude oil prices were around $70 per barrel, but they have now crossed $100 per barrel.
With crude prices rising sharply, oil companies were under pressure. Therefore, companies decided to increase fuel prices to compensate for losses. If crude oil prices remain high for a long period, petrol and diesel prices may be increased further.
Government had earlier reduced excise duty by ₹10 each
Earlier, the government had reduced special excise duty by ₹10 each on petrol and diesel to keep fuel prices stable. Excise duty on petrol was cut from ₹13 per litre to ₹3, while duty on diesel was reduced from ₹10 to zero.
The central government used to collect a total excise duty of ₹21.90 per litre on petrol. After the reduction in special additional excise duty, it came down to ₹11.90 per litre. Similarly, total central excise duty on diesel was reduced from ₹17.8 per litre to ₹7.8 per litre.
PM Modi had urged people to reduce fuel consumption
Prime Minister Narendra Modi had, during an event in Telangana on Sunday, advised people to use petroleum products cautiously in view of the geopolitical situation in West Asia.
The PM said that the current situation demands very restrained use of petrol, gas, and diesel. He added that imported petroleum products should be used only as per necessity. According to him, this would not only help save foreign exchange but also reduce the adverse impact of war.
