The price of petrol and diesel are rising at a very high rate. Due to rise in crude oil prices, the price of petrol and diesel are at a height. After March 19 the price of petrol is raised by more than 70 paise per liter while that of diesel is increased by more than 90 paise per liter.
The price of petrol all across the country have raised up to 1-2 percent while that of diesel is raised up to 2 percent in most major cities.
State wise rate of petrol
Prices of petrol in Mumbai have risen to Rs. 80.82 per liter. In Amravati, the price of petrol has reached to Rs. 82 per liter. Prices of petrol in Delhi have risen to Rs. 72.96 per liter. The petrol prices in Kolkata and Chennai have gone up to Rs. 75 per liter. In Bengaluru, the rate is increased by Rs 72.39 per liter for petrol.
State wise rate of diesel
Prices of diesel in Mumbai are raised to Rs. 67.91 per liter. While in Delhi the price of diesel has reached to 63.77 per liter. The prices of crude oil are also increased by $70 per barrel. The prices of diesel have risen to about Rs 66 per liter. The rate of diesel in Bengaluru is increased by Rs. 62.92 per liter.
Reason for increase in crude oil prices
Crude oil prices are rising due to the market war across the globe which is affecting Indian rupees also. India imports heavily required fuels, petrol, and diesel from foreign countries. The rate of rupees has been reduced down to three months of low level. We have to pay more than a dollar because our Indian rupee is cheaper than the dollar which means India will have to spend more rupees. Because of which the prices of petrol and diesel are increasing.
In 2010, the government has left the prices of fuels on the global market. Later, by using it powerful weapon of Excise duty, government reduced the price of petrol and diesel by 2 rupees. An Excise duty is a tax on manufactured goods which is applied at the point of manufacture, rather than at its sale. But it did not last for a longer time period due to increase in crude oil prices. The BJP government has cut excise duty only once and has raised it nine times between November 2014 and January 2016.
The website for Indian Oil’s shows how the prices of petrol and diesel have been going up by a few rupees every single day. With an increase in the price of petrol and diesel, the demand for reduction of excise duty increases on government.
Other countries reaction to it
Saudi Arabia which is the major oil producers will continue producing oil until their deal with India on supply cuts expires by the end of 2018. The list of oil producers includes OPEC and Russia, which is the world’s biggest crude oil producer. They refused the production of Crude oil in January last year to support the prices. The US supported the crude oil prices, due to decline in drilling activity for new oil production.
According to Automobile Association, a rise in the price of petrol and diesel are expected due to a global increase in oil prices. This rise in fuel price will immediately impact the prices of all virtual goods and services and the consumer will have to bare all the consequences of it.
Oil Minister Dharmendra Pradhan would try to cut excise duty on these two fuels by asking states to first cut VAT. He said that Finance Minister Arun Jaitley has already written a notice to all the states seeking a reduction in the VAT.