Petrol, diesel prices on the rise againOctober 07, 2018 16:04
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.
In Bharatiya Janata Party-ruled states, the reduction was higher as they matched the cut with a similar reduction local sales tax or Value Added Tax.
But the prices were on the rise from the very 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. 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. Petrol in Mumbai sells for Rs 87.29 a litre on Sunday and diesel is priced at Rs 77.06.
Petrol prices had hit an all-time high of Rs 84 per litre in Delhi and Rs 91.34 in Mumbai on October 4.
Diesel rates too had peaked to Rs 75.45 a litre in Delhi and Rs 80.10 in Mumbai.
Following the twin decision, they fell to Rs 81.50 per litre of petrol in Delhi and Rs 86.97 in Mumbai.
Diesel rates fell to Rs 72.95 in Delhi and Rs 77.45 in Mumbai on October 5. On Sunday, the rates hit a three-week high.
Private retailers like Nayara Energy, formerly known as Essar Oil, too are matching PSU rates by subsidising fuel by Re 1 a litre.
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 governor's rule, too reduced tax on the two fuel.
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. -- PTI