Action To Cool Petrol, Diesel Prices Likely This Week: Report

With petrol and diesel prices rising to all-time highs in some cities, the government is likely to announce steps to curb the upmove. Facing a "crisis situation" created by rising fuel prices, the government is likely to come out with "some steps" this week to deal with record high petrol and diesel rates, news agency Press Trust of India reported on Tuesday citing a senior official. The comments come on a day petrol and diesel prices scaled new all-time highs in Delhi and Mumbai, and petrol price reached a record high of Rs 79.79 per litre in Chennai. Also, Oil Minister Dharmendra Pradhan had on Monday said the government was looking at ways to keep the rising fuel prices in check.

The government may not rely only on cutting excise duty, which makes up for a fourth of the retail selling price, the official said but did not elaborate, according to Press Trust of India.

"Rising fuel price is a crisis situation for government and it has to be handled with combination of steps. Finance ministry is consulting the petroleum ministry on rising crude prices," the agency cited the official as said.

"Some steps to deal with rising oil prices are likely to come this week," he added.

Currently, petrol prices are at Rs. 76.87 per litre in Delhi, Rs. 79.53 per litre in Kolkata, Rs. 84.7 per litre in Mumbai and Rs. 79.79 per litre in Chennai, according to Indian Oil. Diesel prices are at Rs. 68.08 per litre, Rs. 70.63 per litre, Rs. 72.48 per litre and Rs 71.87 per litre respectively. At Rs 79.53 per litre, the price in Kolkata is at a near-five year high.

Rates vary from state to state depending on the incidence of local sales tax or VAT. The prices in Delhi are the lowest among all metros and most state capitals.

Industry bodies Ficci and Assocham had on Monday called for the government to urgently reduce fuel excise duties, according to a report by news agency IANS. They also urged the government to bring automobile fuels under the purview of Goods and Services Tax (GST).

"At a time when the Indian economy is on a recovery path, rising oil prices are again posing a high risk to India's economic growth trajectory," Ficci had said.

The government had raised excise duty nine times between November 2014 and January 2016 to shore up finances as global oil prices fell, but then cut the tax just once in October last year by Rs 2 a litre.