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Petrol and Diesel Saw Steepest Lifetime Hike in Prices in the Last 12 Months: Report

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The prices of petrol and diesel saw their steepest lifetime hikes over the last year. According to a report in Moneycontrol, between February 22 last year and this year, rates of petrol increased by Rs 18.64 a litre and diesel by Rs 16.32 a litre, rising 26 per cent and 25 per cent, respectively. The surge in prices took place despite a decline in crude oil rates by 32 per cent during the same period.

The price of petrol in Delhi was Rs 90.58 per litre on February 22, while diesel was Rs 80.97 per litre. The rise in taxes by the Centre and State governments after international crude prices reached $19 a barrel last April is a major reason behind the current high price.

In February 2021 alone, petrol and diesel prices were raised by Rs 4.28 a litre and Rs 4.49 a litre respectively. This led to Finance Minister Nirmala Sitharaman terming it a vexatious issue. Data on fuel prices  since 2003 accessed by Moneycontrol indicate that, in percentage terms, the highest rise in diesel prices occurred between 2016 and 2017 (February 22), when it zoomed by 31% or Rs 14.06 per litre. Similarly, petrol prices saw their steepest rise of 31 per cent or Rs 13.65 per litre in 2011.

Since June 26, 2010 and October 19, 2014, prices for petrol and diesel have been market-determined. The government launched a daily pricing mechanism on June 16, 2017, in order to bring more transparency to the cost of petrol and diesel. The price of petroleum products is based on a 15-day average of the foreign market prices of the respective products. After taking into account factors such as international product rates, the exchange rate, the tax structure, inland freight and other cost elements, oil marketing firms take a call on the retail selling price.

Compared to a historic low of $19 a barrel in April 2020, Brent oil prices increased to $63.73 a barrel at one point on February 22. Every $1 rise in the price of crude oil will drive up the price of petrol and diesel by 50-55 paise per litre. Every $1 barrel rise in oil prices, according to projections, increases the country’s import bill by $1.4 billion and every $10 barrel increase in crude oil prices increases the fiscal deficit by around 0.1% of GDP. The decline in oil production by the Organization of the Petroleum Exporting Countries (OPEC) is a major explanation for the recent increase in international crude oil prices



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Airline CEOs, Biden Officials Consider Green-Fuel Breaks

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Chief executives of the nation’s largest passenger and cargo airlines met with key Biden administration officials Friday to talk about reducing emissions from airplanes and push incentives for lower-carbon aviation fuels.

The White House said the meeting with climate adviser Gina McCarthy and Transportation Secretary Pete Buttigieg also touched on economic policy and curbing the spread of COVID-19 travel has been a vector for the virus. But industry officials said emissions dominated the discussion.

United Airlines said CEO Scott Kirby asked administration officials to support incentives for sustainable aviation fuel and technology to remove carbon from the atmosphere. In December, United said it invested an undisclosed amount in a carbon-capture company partly owned by Occidental Petroleum.

A United Nations aviation group has concluded that biofuels will remain a tiny source of aviation fuel for several years. Some environmentalists would prefer the Biden administration to impose tougher emissions standards on aircraft rather than create breaks for biofuels.

Biofuels are false solutions that dont decarbonize air travel, said Clare Lakewood, a climate-law official with the Center for Biological Diversity. Real action on aircraft emissions requires phasing out dirty, aging aircraft, maximizing operational efficiencies and funding the rapid development of electrification.

Airplanes account for a small portion of emissions that cause climate change about 2% to 3% but their share has been growing rapidly and is expected to roughly triple by mid-century with the global growth in travel.

The airline trade group says U.S. carriers have more than doubled the fuel efficiency of their fleets since 1978 and plan further reductions in carbon emissions. But the independent International Council on Clean Transportation says passenger traffic is growing nearly four times faster than fuel efficiency, leading to a 33% increase in emissions between 2013 and 2019.

The U.S. accounts for about 23% of aircraft carbon-dioxide emissions, followed by Europe at 19% and China at 13%, the transportation group’s researchers estimated.

The White House said McCarthy, Buttigieg and economic adviser Brian Deese were grateful and optimistic to hear the airline CEOs talk about current and future efforts to combat climate change.

Nicholas Calio, president of the trade group Airlines for America, said the exchange was positive.

Airlines are ready, willing and able partners, and we want to be part of the solution” to climate change, Calio said in a statement. We stand ready to work in partnership with the Biden administration.

Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor



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