Petrol hits Rs 82.03 mark in Delhi, Rs 87.50 in Mumbai
New Delhi: Petrol and diesel prices increased to Rs 87.29 per litre and Rs 77.06 per litre respectively, in Mumbai on Sunday. The price of petrol increased by 14 paise per litre and the price of diesel increased by 31 paise per litre in the financial capital, according to Indian Oil Corporation (IOC).
In Kolkata, the price of petrol stood at Rs 83.66 per litre and the price of diesel stood at Rs 75.38 a litre. Petrol and diesel prices increased by 14 paise and 29 paise, respectively, on Sunday.
The prices of petrol and diesel have been increasing since mid-August
According to the media reports, the prices of petrol and diesel have been increasing since mid-August.
On October 4, Finance Minister had announced Rs 2.5 per litre cut in petrol and diesel prices. Of which, Rs 1.5 per litre is on account of reduction in excise duty and the remaining Re 1 per litre would be absorbed by oil marketing companies.
In BJP-ruled states, the reduction was higher as they matched the cut with a similar reduction in local sales tax or VAT. The govt had also appealed state governments to cut sales tax or value added tax (VAT) on petrol and diesel by a similar amount.
Following this, states such as Assam, Gujarat, Haryana, Himachal Pradesh, Jharkhand, Madhya Pradesh, Maharashtra, Uttar Pradesh and Tripura, among others, declared a cut in prices of petrol and diesel. Kerala and Karnataka refused to cut taxes on petrol and diesel.
Private retailers like Nayara Energy, formerly known as Essar Oil, too are matching PSU rates by subsidising fuel by Re 1 a litre.
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.
The reduction in excise duty, only the second in four years of BJP-led NDA rule, will dent central government revenues by Rs 10,500 crore and was aimed at cooling retail prices that had shot up to an all-time high.
The BJP-government at the Centre had raised excise duty on petrol by Rs 11.77 a litre
The BJP-government at the Centre had raised excise duty on petrol by Rs 11.77 a litre and that on diesel by Rs 13.47 a litre in nine installments between November 2014 and January 2016 to shore up finances as global oil prices fell, but then cut the tax just once in October last year by Rs 2 a litre.
The hike in duties in 2014-16 had led to excise collections from petro goods rising from Rs 99,184 crore in FY15 to Rs 2,29,019 crore in FY18. States saw their VAT revenue rise from Rs 1,37,157 crore in FY15 to Rs 1,84,091 crore in FY18.