Petrol, diesel prices hit highest level since 2014
NEW DELHI : Prices of petrol which is reset every day, has crossed the Rs 80 mark on Monday in Mumbai, since Modi government came to power in 2014. Petrol prices in Mumbai rose by 15 paise per litre compared to Sunday’s (January 21) price of Rs 79.95.
The BJP-led NDA government had raised excise duty nine times between November 2014 and January 2016 to shore up finances as global oil prices fell, but cut the tax only once in October last year by Rs 2 per litre.
Petrol price rose to Rs 72.43 per litre in Delhi, highest since March 2014, while diesel price rose to Rs 63.38 per litre in Delhi. In Mumbai, prices have crossed Rs 80-mark – costliest in the country.
Diesel is being sold at Rs 67.50 in Mumbai, where the local sales tax or VAT rates are higher.
The spurt in rates, caused by the rally in international oil prices, has led to the oil ministry asking the finance ministry for a cut in excise duty in the Union Budget 2018-19, to be presented in Parliament next week.
The reduction sought is part of the pre-Budget memorandum submitted by the ministry for the consideration of Finance Minister Arun Jaitley, officials said. The central government levies Rs 19.48 per litre excise duty on petrol and Rs 15.33 on diesel.
In the last two months, petrol prices have gone up by over Rs 3.50 per litre in Mumbai or nearly 5 per cent hurting consumers. Meanwhile, there was a steeper increase in diesel price in Mumbai as it was retailing at Rs 67.10 per litre, up from Rs 66.91 per litre on Sunday. Diesel price in Mumbai has increased by nearly 10 per cent in last two months.
In October last year government had cut excise duty on both petrol and diesel by Rs 2 per litre when petrol prices touched Rs 79.99 in Mumbai.
There are reports that the government may review the excise duty being charged on petrol and diesel if Brent crude price crosses $75 per barrel. Meanwhile, the government is also considering bringing petrol and diesel under the purview of Goods and Services Tax (GST).
State-owned oil companies in June last year dumped the 15-year old practice of revising rates on 1st and 16th of every month and instead adopted a dynamic daily price revision to instantly reflect changes in cost. Rates during the first fortnight starting June 16 dropped but have been on the rise since July 4.
