Petrol price hit a 55 month at INR 81.96 per litre in Mumbai, India’s financial capital. Diesel prices touched an all time high at INR 69.54. These are the highest recorded fuel prices in the state of Maharashtra. In Delhi too, diesel price crossed Rs 64 per liter, which is the highest ever recorded price of diesel in Delhi. These increase in fuel prices has given rise to renewed calls to the Government of India to cut excise tax rates.
Since June 2017, state owned oil firms Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation have been revising petrol and diesel prices on a daily basis. Over the last three months, price of petrol and diesel have increased by about Rs 5 a liter.
The rise in petrol and diesel prices is due to rise in the rate of crude oil. India imports more than 80% of its crude oil requirement from international market. This makes our petrol and diesel price directly proportional to international crude oil prices.
The Oil Ministry had earlier sought a reduction in excise duty on both petrol and diesel to cushion the impact of rising international oil prices. This was however turned down by Finance Minister Arun Jaitley in budget presented on 1st February.
Among all South Asian nations, India ranks the highest where retail prices of petrol and diesel are concerned with taxes accounting for half of fuel pump rates. More than 48% of petrol’s value and 38% of diesel value is charged by the govt as tax in India.
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