Indian fuel retailers range pump prices of petrol and diesel with their international benchmark rates of previous day. Benchmark Brent crude, fell marginally by 0.06% at $71.31 per barrel on Thursday. It gained 0.81% on Friday close at $71.89 a barrel. It, however, fell 0.56% at $71.49 per barrel on Monday early trade.
Pump prices of fuels are also high because of taxes. In Delhi, central levies account for 34.8% of petrol’s price and state taxes, 23.08%, according to an official data of June 1. On diesel, central taxes are over 37.24% while state taxes are about 14.64%. Through 2020, as global crude prices fell, the central government raised excise duty on the fuel to shore up its finances. States too followed suit — with revenues hit on account of the pandemic.
Even as international oil prices saw volatility in last one month, pump rates of auto fuels in India moved only in the upward direction. For immediate, despite Brent crude had dived to $65.11 on May 20, the lowest in these 34 days; petrol and diesel rates went up the next day by 19 paise per litre and 29 paise a litre respectively.
According to administratives working in state-run oil marketing companies, pump prices are also high. Because companies were recovering their past revenue losses like the one suffered for 66 days since February 27.