Petrol, diesel prices remain unchanged for 10th straight day
The rates of petrol and diesel remained unchanged for the tenth straight day on Sunday after touching record highs earlier this month. Fuel prices were brought down on Diwali (November 4) as the central government and several state governments announced relaxations. However, the rates still remain above Rs. 100 per liter in metropolitan cities along with several other cities.
Why does this story matter?
Petrol and diesel rates across India touched record highs earlier this month, crossing even Rs. 120 per liter for petrol in some regions. The price hike had brought immense criticism to the central government. Even with the latest reduction, the rates remain extremely high. Incidentally, global crude prices have come down from a three-year high of $85 to $82 in the past month.
How much does fuel cost?
In Delhi, petrol and diesel are currently retailing at Rs. 103.97 per liter and Rs. 86.67/L, respectively. In Mumbai, petrol is priced at Rs. 109.98/L, while diesel is selling at 94.14/L. In Kolkata, petrol costs Rs. 104.67/L, while diesel costs 89.79/L. Petrol and diesel were priced at Rs. 101.40/L and Rs. 91.43/L in Chennai, respectively.
Excise duty, VAT was reduced
Starting November 4, the Centre had slashed excise duty on petrol and diesel by Rs. 5/L and Rs. 10/L, respectively. The Centre had then blamed the price hike on global rates. Several states and union territories also offered relaxations on Value Added Tax (VAT) after the Centre's nudge. The tax incidence on petrol and diesel has been brought down by 50% and 40%, respectively.
Centre hiked excise duty last year
Last year, the Centre had hiked excise duty on petrol from Rs. 19.98/L to Rs. 32.9/L (before the latest cut) to benefit from reduced international oil prices. Excise duty on diesel was hiked to Rs. 31.80/L (before the latest cut). However, even as global oil prices rose again, the excise duty remained unchanged. Further, rates were hiked by roughly Rs. 26/L this year alone.