Diesel prices hit fresh record levels in four metros across the country on Tuesday.Oil Marketing Companies (OMCs) increased the prices of both petrol and diesel today for a third straight day. According to daily price notification issued by state-owned oil firms, diesel can be purchased today at Rs 69.61 per litre in Delhi. Diesel is being sold at Rs. 73.90 per litre in Mumbai, Rs. 72.46 per litre in Kolkata and Rs. 73.54 per litre in Chennai. The revised rates are applicable from 6 am on August 28, 2018.
Petrol is retailing at a price of Rs 78.05 per litre in the national capital i.e. Delhi today. In Mumbai, petrol is being sold at Rs. 85.47 per litre in Mumbai. Petrol is priced at Rs 80.98 per litre in Kolkata and Rs. 81.09 per litre in Chennai.
As per the data available with Indian Oil, excise duty of Rs 19.48, VAT (Value Added Tax) of Rs 16.56 and dealer commission (average) of Rs 3.61 are imposed on daily retail price of petrol and diesel in Delhi. Petrol is priced at Rs 78.05 per litre in Delhi today, which means actual petrol is cheaper than the taxes plus dealers' commission. The actual petrol price is Rs 38.26 and 39.65 are the taxes plus dealer's commission.
According to an IANS report, the rise in prices of diesel gains significance as it is mostly used in transportation of food and agricultural products and an increase in its price may lead to higher inflation. The surge in fuel prices is largely attributed to the recent rise in crude oil cost and the high excise duty levied on transportation fuel in the country.
State-run oil marketing companies Indian Oil, Bharat Petroleum and Hindustan Petroleum revise fuel prices with effect from 6 am on a daily basis. Fuel prices in Delhi are the cheapest in all metros and most state capitals due to lower sales tax or VAT (Value Added Tax). Mumbai has the highest VAT (Value Added Tax) of 39.12 per cent on petrol.
According to a report of Press Trust of India (PTI), petrol and diesel will not come under the purview of Goods and Services Tax (GST) in the immediate future as neither the Central government nor any of the states is in favour on fears of heavy revenue loss.
Globally, oil prices rose on Tuesday as risks of supply disruptions from places such as Venezuela, Africa and Iran triggered expectations of a tightening market. Despite some concerns about an economic slowdown because of the US-China trade conflict, crude supplies are relatively tight due to disruptions as well as voluntary restraints on output by the Organization of the Petroleum Exporting Countries (OPEC), reported Reuters. (With agencies inputs)
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