Fuel prices increase 16 days in a row. What is happening?

Prices for petrol and diesel have been hiked for the 16th consecutive day. Petrol price was hiked by 33 paise per litre while diesel went up by 58 paise.

In 16 days, the price of petrol has gone up by Rs. 8.30 per litre and diesel by Rs. 9.46 a litre. The latest revision of the fortnightly prices is the highest since April 2002. It is said that the previous maximum for a fortnightly increase was Rs. 4-5 per litre.

In Delhi, a litre of diesel now retails for Rs. 78.55 and petrol costs Rs. 79.56 per litre. These are the peak prices of diesel and petrol since October 16 and October 4, 2018 respectively.

Almost two-thirds of the retail selling price - 64% in petrol and 63% in diesel - consists of state and central government taxes. But, unlike October 2018, when the government had cut excise duty on petrol and diesel by Rs. 1.50 per litre each and State-owned oil companies were asked to absorb another Rs. 1 a litre, there are no such moves planned this time around. The state and central authorities are busy compensating for the losses in revenue due to lockdown.

Source