Hike in petrol, diesel prices continues for 11th straight day

Friday, 25 May, 2018

After moving to daily revision of fuel prices in June last year, the government had cut basic excise duty on petrol and diesel by Rs 2 per litre in October last year. The previous high for petrol price in Delhi was Rs 76 per liter in September 2013 when crude oil prices were hovering around $108-115 per barrel.

Prices of the key transportation fuel in the other major cities of Kolkata, Mumbai and Chennai were at Rs 80.47, Rs 85.65 and Rs 80.80 a litre, up Rs 3.15, Rs 3.17 and Rs 3.37 from the levels on 13 May, according to the data on the International Olympic Committee website.

In February 2015, petrol retailed at Rs. 56.49 per litre in Delhi and diesel at Rs. 46.01.

The prices of Brent crude was seen at $79.19 a barrel at one point on Wednesday, while the Indian basket crude oil prices was seen at $78.10 a barrel.

Apparently, the OPEC has passed a unilateral decision of reducing the production of crude oils raising their prices in the worldwide market to as much as 80$ per barrel which has increased its demand than its supply.

Rising pump prices are already adding to inflationary pressure and are strengthening the case for a rate hike.

Rates vary from state to state depending on the incidence of local sales tax or VAT.

Union Minister for Petroleum and Natural Gas Dharmendra Pradhan on Thursday said that the reduced value of the Indian rupee in comparison to the USA dollar is causing fuel price hike.

The centre has held talks with the oil companies as part of controlling the price.

Replying to questions over the taxes from the center, Fadnavis praised the central government under Modi for "standing beside Maharashtra". Gujarat, Himachal Pradesh, Madhya Pradesh and Maharashtra have since reduced Value-Added Tax on petrol and diesel.

Meanwhile, the Congress party workers were protesting against rising fuel prices and demanded the petroleum products should be brought under the ambit of Goods and Services Tax (GST).

M. K. Surana, chairman of state-run fuel retailer and refiner Hindustan Petroleum Corp, said the government should review taxation of petrol and diesel to provide relief to the customer. It is result of this all that petrol prices have hit highest level under present government and diesel too is at record high these days.

As per the Indian Oil Corporation (IOCL), amended petrol prices in metropolitan cities are Delhi Rs 77.83 per litre; Mumbai 85.65; Kolkata 80.47 and Chennai 80.80; whereas diesel prices are: Delhi 68.75; Mumbai 73.2; Chennai 72.58; Kolkata 71.30.