Brace for another fuel price hike

Lloyd Doyle
October 16, 2018

Petrol prices have increased by R2.65 a litre since January, and diesel by R2.91.

"However‚ the potential price hikes are still daunting‚ especially for diesel users".

Government figures show the average cost of a litre of petrol rose by 0.7p in the past week to £1.31 at United Kingdom forecourts despite wholesale costs falling.

The diesel price rose for the 10th consecutive day on Monday to wipe out all of the ₹2.50 a litre cut in rates announced earlier this month through excise duty cut and oil company subsidy.

Although the rand has slightly strengthen against the United States dollar and contributed to easing the fuel price increases, the Central Energy Fund attributed the rise to worldwide oil prices and present tensions of the world's biggest oil producers, Saudi Arabia.

After the Centre cut excise duty by Rs 1.50 and asked the PSU oil firms to subsidise fuel by ₹1, Maharashtra and Gujarat were among the first to announce a matching ₹2.50 cut. In the meet, PM discussed the measures to control the continuously rising fuel prices and the United States sanctions on Iran due to come into effect from November 4.

Meanwhile, Punjab Chief Minister Amarinder Singh on Monday ruled out the reduction in Value Added Tax (VAT) on petrol and diesel in the state for now and stated that VAT collection on petrol was one of the three sources of income for the state. Chhattisgarh, Jharkhand, Tripura, Uttar Pradesh, Madhya Pradesh, Himachal Pradesh, Haryana Assam, Uttarakhand, Goa, Arunachal Pradesh and Bihar followed suit. Diesel cost Rs 79.11 per litre, an increase of nine paise from Sunday. Diesel in these two states is cheaper by Rs 2.02 and Rs 1.72 per litre, respectively.

He said measures are not being taken to provide relief to people and demanded that petrol and diesel should be brought under the Goods and Services Tax (GST).

Other reports by Iphone Fresh

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