Petrol now costs a lifetime high of Rs 84.95 per litre in Delhi while diesel comes for Rs 75.13, according to a price notification from oil marketing companies
The price hike on Monday came after three days of unchanged rates. Prices were last hiked by 50 paise a litre in two instalments on January 13 and 14.
In Mumbai, the price of petrol soared to an all-time high of Rs 91.56 a litre while diesel rates went up to Rs 81.87.
Petrol price in Mumbai breached the previous high of Rs 91.34 hit on October 4, 2018, while diesel too is at a record high.
State-owned fuel retailers Indian Oil Corporation Ltd (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) had on January 6 resumed daily price revisions after nearly a month-long hiatus.
This after international oil prices firmed up on hopes of demand returning from rollout of coronavirus vaccines in different countries, including India.
The highest-ever rate of diesel in Delhi was on October 4, 2018, when it touched Rs 75.45 a litre mark. On that day, petrol was priced at Rs 84.
The government had responded to the situation in October 2018 by cutting excise duty on petrol and diesel by Rs 1.50 per litre in a bid to ease inflationary pressure and boost consumer confidence.
Alongside, state-owned fuel retailers cut prices by another Re 1 a litre, which they recouped later.
Though petrol and diesel rates are to be revised on a daily basis in line with benchmark international price and foreign exchange rates, government-controlled fuel retailers have been moderating rates since the pandemic broke out.
This after they adjusted a Rs 13 per litre hike in excise duty on petrol and Rs 15 a litre on diesel against a decrease in the retail selling price that was warranted by crude oil prices slumping to an average of USD 19 per barrel in April.
Excise duty totals Rs 32.98 per litre in petrol and Rs 31.83 in diesel.
VAT in Delhi totals to Rs 19.32 a litre on petrol and Rs 10.85 on diesel.
With international oil prices rebounding from the lows of April, retail rates in India too were revised. Since May 2020, petrol price has risen by Rs 15.29 per litre and diesel by Rs 12.84, price notifications of oil companies showed.