Energy department intervenes to keep petrol price increase down

Elizabeth Houston
September 4, 2018

The price of the fuel rose by the same amount in Delhi to Rs 79.31, and in Kolkata it costs Rs 82.22 a litre.

The rupee-dollar exchange rate has dropped to an all-time low of Rs 71.42 to a dollar on August 31. This came at a time when India's crude oil imports from Iran had increased by 52 percent in June 2018. Since August 16, petrol prices have risen by over Rs 2 per litre and diesel by Rs 2.42 a litre.

Thanks to that intervention, the price a litre of 95-octane petrol will go up on Wednesday from R15.44 to R15.49 at the coast and from R16.03 to R16.08 in Gauteng.

Rising oil prices continues to remain a concern with petrol price in Mumbai crossing Rs 86 per litre and diesel being sold at Rs 75.74 per litre on Tuesday.

Fuel prices
Energy department intervenes to keep petrol price increase down

The appreciation of dollar against rupee has also pushed up rates for compressed natural gas (CNG) as well as piped natural gas (PNG) since the price of gas procured by city distributors is mostly dollar-denominated. According to a price notification of state-owned fuel retailers, petrol price was on Tuesday hiked by 16 paise per litre and diesel by 19 paise.

Global crude oil price has been on a rise in the last few months and is hovering above $70 per barrel. This had also led to several transport unions holding agitations in July and demanding the government to bring petrol and diesel under the ambit of GST. "Secondly, global currencies have weakened against the U.S. dollar". "If taxes are cut, prices will decline significantly", Chidambaram said on Twitter. 5 cents a litre, while the reference price of 95 octane unleaded petrol will top 1 euro 60 a litre.

The Central Excise Duty is levied by the central government. Nearly half of fuel price is made up of taxes. "We can not reduce defence expenditure or interest payments if we decide to cut excise of petrol and diesel", the official explained. While Mumbai has the highest VAT (Value Added Tax) of 39.12 per cent on petrol. Delhi charges a VAT of 27 per cent on petrol and 17.24 per cent on diesel.

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