Published: Tue, May 29, 2018
Business | By Pearl Harrison

Petrol, diesel prices hiked for 16th straight day

Petrol, diesel prices hiked for 16th straight day

Petrol prices across the four metros have been increased by over Rs 3 per litre in the past 16 days, leading to a political slugfest.

In line with petrol prices, the other key transportation fuel, diesel prices in Delhi, Kolkata, Mumbai and Chennai, rose to Rs 69.17. Petrol price was today hiked by 15 paisa and diesel by 11 paisa.

State-owned Indian Oil Corp (IOC), Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL) were in April 2002 given freedom to revise rates of petrol and diesel on 1st and 16th of every month based on average rate of benchmark worldwide petroleum product prices and rupee-US dollar rates in the preceding fortnight. Some are even suggesting to bring petrol and diesel under the GST, hoping that it would reduce taxes -which is now close to 50 per cent- by half.

An unchecked rise in retail fuel prices will feed into inflation before long, and with the general election barely a year away, the government faces a hard choice.

During his electoral campaign in 2014, Prime Minister Modi had attacked the Congress on rising fuel prices back then and said that under the BJP's rule, people would witness a steep decline in petrol and diesel prices, and the rupee-dollar exchange rate. The most expensive is the Netherlands, where drivers pay £1.47 per litre of petrol. The prices are raised by 15 paisa in Kolkata, Mumbai and by 16 paisa in Chennai.

In Delhi, VAT on petrol was Rs 15.84 a litre, and Rs 9.68 on diesel in April.

These fuel prices put the United Kingdom 10th among European Union member states for the price of fuel.

Mr Faughnan said 90c of the cost of a litre of motor fuel was made up of Government taxes. He, however, said the ultimate decision regarding this remained with the Petroleum Ministry.

Oil companies increased the fuel prices for the 15th consecutive day on Monday, even as worldwide prices of crude oil have reduced in the last three days.

"Moreover, the government has been pretty clear on pricing and is unlikely to reduce excise, which is one factor why oil marketing companies could continue to underperform", he said.

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