As per the Indian Oil Corporation (IOCL), revised petrol prices in metropolitan cities are Delhi Rs 77.83 per litre; Mumbai 85.65; Kolkata 80.47 and Chennai 80.80; whereas diesel prices are: Delhi 68.75; Mumbai 73.2; Chennai 72.58; Kolkata 71.30.
"Central government saves Rs 15 on every litre of petrol due to fall in crude oil prices". "We are considering increment in fuel costs important... oil costs have expanded by a set recipe".
With protests over the petrol price gaining momentum across the country, the price of fuel continued to increase for the 12th consecutive day on Friday.
The Centre's budgeted estimate in revenues from petrol and diesel duties was Rs 2.43 trillion for 2018-19.
The reason behind the increasing fuel prices is the increase of the price of crude oil in the global market and the weakening of INR against United States dollars.
"As far as fuel prices are concerned, including the excise duty or other taxes thereupon, they are very clearly used for country's development, for constriction of more national highways, more roads, more digital infrastructure, taking energy to those villages which were without energy for last so many years", Prasad said, arguing that fuel taxes were necessary for country's development. Even then the prices are at an all time high. How? As per calculations done by the prime minister's chief economic adviser, Arvind Subramanian, in his latest economic survey, every $10/barrel rise in crude prices slows growth by 0.2-0.3 percentage points and fuels Wholesale Price Index (WPI) inflation by 1.7 per cent. The prices had plateaued for almost 20 days prior to the voting day. "We have been given complete independence in this regard", Singh said. This is because of the global oil price fluctuation.
The centre has held talks with the oil companies as part of controlling the price. State sales tax or VAT vary from state to state. Currently, petrol is taxed at a little over 100 percent and for diesel, the taxes come at around 66.48 percent. "The government is involved in this whole process, including the concern (about rise in prices) and also the uncertainty", he told reporters here. These include central excise duty and Value-Added Tax.
It would also make it £8 more expensive to fill up a 55-litre vehicle with either petrol or diesel - £69.64 to £77.55 for petrol and £71.18 to £79.20 for diesel.
M. K. Surana, chairman of state-run fuel retailer and refiner Hindustan Petroleum Corp, said the government should review taxation of petrol and diesel to provide relief to the customer.