Petrol, diesel prices hit fresh highs

Lloyd Doyle
September 12, 2018

A 14 paisa per litre hike in petrol and diesel prices each took the rates to an all-time high, according to price notification of state-owned fuel retailers.

A public interest litigation (PIL) seeking the sale of petrol and diesel at reasonable prices instead of letting oil companies increase the rates exorbitantly was filed in the Delhi high court on Tuesday.

Petrol prices in Parbhani touched Rs 80 on January 8 this year.

With the Finance Ministry ruling out any reduction in Central excise duties on petrol and diesel and also indicating that bringing them under Goods and Services Tax (GST) may not be feasible, it is now left to the States to ease the pricing pressure on consumers.

Meanwhile, Andhra Pradesh Chief Minister Chandrababu Naidu announced a cut of Rs 2 in petrol and diesel prices.

When oil prices were low in 2014-2016, the government had raised duties sharply but it's refusing to cut taxes now when oil rates have recovered, resulting in record fuel prices currently. Petrol rates in Parbhani are higher by 0.65 paise than Aurangabad, which is around 200km away from Parbhani.That means people have to pay 0.65 paise more in between 200 km. Same is the case with diesel price in Maharashtra, Tamil Nadu and Rajasthan, where the sales tax on diesel is higher than in Kerala.

"How can such rate be imposed in the case of GST", the official asked indicating that petrol-diesel might not be brought under GST for the time being. The cut was based on the prices prevailing on May 30. Without taxes, the retail price of a litre of petrol and diesel should have been around Rs. 40, even at the current level of worldwide crude oil prices. Now, three months after, the prices are Rs 84.06, and Rs 77.98.

She said that while Value-Added Tax on petrol was 30 percent, it was 22 percent on diesel. Dealer's commission on petrol now is Rs 3.34 per litre and that on diesel is Rs 2.52.

On March 1 this year, the state had secured a litre of petrol for Rs 54.60.

Later, amid the constant rise in the prices of petrol and diesel, BJP president Amit Shah on Monday met Oil Minister Dharmendra Pradhan, PTI reported. The state's share now works out to Rs 23.

The AP govt will incur a revenue loss of Rs 1,120 crore with the slashing of petrol and diesel prices.

Other reports by Iphone Fresh

Discuss This Article