Saturday, 22 September, 2018

Biggest single-day increase in petrol and diesel prices in Ahmedabad

High oil prices to worsen India's loan bill Petrol price hits record high of Rs 80.38 per litre in Delhi; diesel at Rs 72.51 per litre
Lloyd Bates | 10 September, 2018, 18:46

Since mid-August, petrol price has risen by Rs 3.24 a litre and diesel by Rs 3.74 per litre as rupee hit record low against the United States dollar, making imports costlier.

Meanwhile, normal life was hit in some states on Monday with offices and educational institutes closed and vehicles off the roads during an opposition sponsored "Bharat Bandh" against the rising fuel prices. Both petrol and diesel prices increased by Rs 0.23/litre, reaching a new high of Rs 88.12/litre and Rs 77.32/litre, reported The Indian Express. Two of them, rising price of crude oil and depreciation in the value of the rupee against the U.S. dollar, are beyond the control of government. According to petroleum dealers in the State, compared to Friday's price, petrol on Saturday cost 41 paise more while diesel price rose 48 paise a litre. One factor, the high level of taxes on the retail price, is a fiscal choice.

Petrol and diesel prices continue to rise for the fifth consecutive day in the nation capital. In Mumbai, a litre of petrol costs Rs 87.77 and diesel comes for Rs 76.98, the notification said.

In Kolkata, the price of petrol has been increased to ₹83.27 per litre while the diesel price has gone up to ₹75.36 per litre.

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Since oil prices have started rising, following USA sanctions on Iraq and the slide of the rupee against the dollar, there have been calls to reduce tax. "Moreover tax structure is such that VAT on fuel rises with the rise in the price of fuel".

The VAT on petrol has been reduced from 30 to 26 per cent and from 22 to 18 per cent on diesel, Rajasthan Chief Minister Raje announced at a public gathering in Rawatsar in Hanumangarh district on Sunday.

In Andhra Pradesh, the Value added tax or VAT has been among the highest anywhere - 35.77 per cent for petrol, next only to Maharashtra and Madhya Pradesh, and 28.08 per cent for diesel, the highest in the country.

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