Petrol, diesel prices on the rise again

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 NEW DELHI: Oil-marketing companies increased the prices of petrol and diesel across the four metro cities on Sunday.

 

Within a day of the one-off excise duty cut and PSUs subsidising fuel, petrol and diesel prices are on the rise again and have hit a three week high. 

Petrol and diesel prices were cut by a minimum Rs 2.50 on October 5 when the government's only second cut in excise duty of Rs 1.50 per litre and state-owned fuel retailers providing a Re 1 per litre subsidy came into effect.

However, the prices were on the rise from the next day. Petrol price was hiked by 18 paise a litre on October 6 and 14 paise on Sunday, according to daily price notification issued by state-owned oil firms. 

Petrol, which in Delhi was cut to Rs 81.50 on October 5, on Sunday costs Rs 81.82. Similarly, diesel rates are hiked by 29 paise a litre each on October 6 and Sunday. It costs Rs 73.53 per litre in Delhi, up from Rs 72.95 on October 5, according to the oil firms. Petrol in Mumbai sells for Rs 87.29 a litre on Sunday and diesel is priced at Rs 77.06. 

Delhi, which did not cut VAT on fuel, still has the cheapest fuel in all metros and bulk of state capital as it levies lower taxes. Mumbai despite reducing VAT on petrol still has the highest priced fuel. 

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. 
They were later joined by Chhattisgarh, Jharkhand, Tripura, Uttar Pradesh, Madhya Pradesh, Himachal Pradesh, Haryana Assam, Uttarakhand, Goa and Arunachal Pradesh with similar moves. Jammu and Kashmir, which is under the governor's rule, too reduced the tax on the two fuels. Maharashtra, however, reduced VAT only on petrol and not on diesel. 

Even before the excise duty cut, Rajasthan, West Bengal, Karnataka, Kerala and Andhra Pradesh had last month reduced VAT to cushion consumers for a spate of price increases.

Petrol and Diesel rates are decided on a daily basis by oil-marketing companies based on the rupee-dollar rate and global crude oil prices.

The fuel rates vary from different city and from different pump depending on local taxes and transportation cost. Delhi has the cheapest fuel rates among all metros and most state capitals because of lower taxes.

The government on Saturday sought to assure investors that it would not go back to regulating fuel prices, a day after Oil Company shares tumbled on concerns about a return to a regime that has hurt their profits in the past.

 

"Let me categorically assure all that there is no going back on deregulation of oil prices," Finance Minister Arun Jaitley said in a Facebook post on Saturday.

 

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