Petrol, diesel prices on the rise again

Lloyd Doyle
October 8, 2018

The price of petrol and diesel in New Delhi was Rs 81.82 per litre (increase by Rs 0.14) and Rs 73.53 (increase by Rs 0.29) respectively on Sunday. In Mumbai, petrol prices were hiked by 18 paise to Rs 87.15.

Petrol, diesel rates: On Wednesday, Brent hit its highest price since late 2014, at $86.74.

Except for Mumbai, diesel prices are up by around 30 paise across the cities.

The price of the fuel in Delhi, Chennai and Kolkata is Rs 73.24, Rs 77.42 and Rs 75.09 per litre, respectively.

After the Centre cut excise duty by Rs 1.50 per litre and asked PSU oil firms to subsidise fuel by Re 1, Maharashtra and Gujarat governments were among the first to announce a matching Rs 2.50 cut. After much chaos regarding the fuel rate, the government has made a decision to cut down the price of the fuel.

The announcement by states came after the Centre chose to reduce petrol and diesel prices by Rs 2.50 per litre on Thursday. At the same time, the prices of crude oil in the worldwide market was $108 per barrel but the prices of the crude oil dropped to $77 per barrel at the start of November and further reduced to $36 in March, 2016.

They were later joined by Chhattisgarh, Jharkhand, Tripura, Uttar Pradesh, Madhya Pradesh, Himachal Pradesh, Haryana Assam, Uttarakhand, Goa and Arunachal Pradesh with similar moves.

Maharashtra, however, reduced Value-Added Tax only on petrol and not on diesel.

The BJP government has increased central excise duty 12 times in the last four and a half years. Finance Minister Arun Jaitley on Saturday assured the markets that the government would not go back to regulating fuel prices.

Rising fuel prices have become a political controversy in India, with attention specifically focused on the high taxes that the Centre charges.

Nearly half of the fuel price is made up of taxes. The Centre, prior to the excise duty cur, levied a total of Rs 19.48 per litre of excise duty on petrol and Rs 15.33 per litre on diesel.

In the press conference, Jaitley said that he expects to see a negative revenue impact of Rs 10,500 crore as a result of the tax cuts and said that he expected that the government would be able to absorb the impact without harming its fiscal deficit target of 3.3%.

Other reports by Iphone Fresh

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