Fossil fuel prices in India have been hiked again today. With the latest price increase, motorists in Mumbai will pay Rs 93.20 a litre for petrol and Rs 83.67 a litre for diesel. This is a new all-time high for both fuels in the city. In the data table below, you can see how much more motorists in Mumbai, Delhi, Chennai and Kolkata are paying for the two fuels in a span of 28 days.
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Petrol, diesel prices in Mumbai stand at Rs 93.20 and Rs 83.67 per litre, respectively
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Prices hiked by Rs 2.37 per litre for petrol and Rs 2.60 per litre for diesel in the last 28 days
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Rising global crude prices is a major factor for the hikes
Given that the price of petrol in Mumbai was Rs 75.28 a litre on April 1, 2020, it means the cost of this fuel has risen by Rs 17.92 a litre in 10 months – a 24 percent price increase. For diesel, the price rise is even steeper – from Rs 65.19 a litre on April 1, 2020 to today’s Rs 83.67 in Mumbai, the price increase is Rs 18.48 – a 28 percent price increase.
The price differential between the two fuels, which was Rs 10.09 a litre at the start of the fiscal year FY2021 on April 1, 2020, is today down to Rs 9.53 a litre, indicating the speedier price rise in the ‘common man’s fuel’ – diesel.
Impact of high fuel prices on Indian motorists
These wallet-busting fuel prices are hitting the Indian motorist – on two and four wheels – very hard. For instance, the owner of a fuel-sipping commuter motorcycle like the Hero Splendor, which has a 11-litre tank, would have paid Rs 828 to tank up on April 1,2020 in Mumbai. Today, he pays Rs 1,025.20 – which is Rs 197.20 more – to go the same distance.
When it comes to cars, a Mumbai-based owner of a Maruti Wagon R which has a 35-litre fuel tank, will today pay Rs 3,262 to tank up compared to Rs 2,634 on April 1, 2020 – a sizeable difference of Rs 628. Meanwhile, to tank up his/her Hyundai Creta, which has a 50-litre fuel tank, the user will have to fork out Rs 4,183.50 today in Mumbai, compared to Rs 3,259.50 ten months ago on April 1, 2020 – a marked difference of Rs 924.
Impact of rising global crude prices
The steep price rise of petrol and diesel is a direct impact of the marked rise in global crude oil prices, which in turn is a result of the global economies swinging back into work mode after the impact of the pandemic. Today’s Brent crude oil price of US $57.46 a barrel, up nearly 200 percent than the $18.38 a barrel on April 1, 2020 when the Covid-19 was peaking and transport and shipping operations worldwide were either in lockdown mode or minimal. However, the hapless Indian motorist never benefited from the record low prices of global crude oil either. Will there be a price cut soon? With oil on the boil, the answer is blowing in the wind.
Sergius Barretto
Viraaj Bhatnagar
Saptarshi Mondal
Kiran Murali
Ketan Thakkar
