Diesel has become more expensive by 70 paise liters on Monday after state fuel dealers raised their rates by another 25 paise liters, the third price increase on fuel in the last four days as international crude oil prices rise to $ 80 per liter. Barrel on increasing concern and demand.
However, pump prices for petrol remain frozen Kr101.19 per liter since 5 September Diesel prices, which had become softer Kr88.62 per liter three weeks ago after climbing to record Kr89.87 liters in mid-July, has been priced at Kr89.32 Monday in Delhi.
Retail prices of petrol and diesel are under pressure due to rising international oil prices and car fuel prices may see a further move north, said two people working in different oil companies, requesting anonymity.
Benchmark Brent crude continued an upward movement in intraday trading on Monday with a gain of 1.83% to $ 79.52 a barrel. It has increased by over 10% from $ 72.22 per share. Barrel three weeks ago. Last week, HT reported that fuel dealers would soon begin to increase fuel prices.
After international oil prices fell below $ 70 per barrel. Barrel in mid-August, fuel dealers had begun to lower fuel prices. Diesel prices were only reduced by 20 paise per liter on 18 August after rising to an all-time high of Kr89.87 liters in mid-July and remained at that level for the next 34 days. Gasoline prices were also reduced by 20 paise liters for the first time on 22 August after hitting a record Kr101.84 per liter in Delhi for 36 days.
Subsequently, several small price reductions made petrol and diesel cheaper by 65 paise liters and KrRespectively 1.25 per liter until their pump speeds were frozen on 5 September.
According to the above figures, international crude oil prices on subdued US oil production rose in view of the Hurricane Ida that tore through the Gulf of Mexico and robust demand for optimism about global economic growth.
“The companies kept prices and expected some tax relief from the government with regard to GST [Goods and Services Tax] relief, but the proposal to include oil products in the GST was rejected at the GST Council meeting on 17 September, forcing companies to think about raising the price of fuel, ”said one person mentioned above.
International oil prices, which are often volatile, directly affect the pumping prices of petrol and diesel in India. Large loads of central and state taxes are also responsible for astronomically high rates for auto fuels.
During 2020, when global commodity prices fell (below $ 20 per barrel in April last year), the state raised excise duties on fuel to boost its economy. Also, states followed suit when their revenues were hit due to the Covid-19 pandemic. As a result, central and state taxes together account for over 50% of retail prices for petrol and diesel.
According to official data, the petroleum sector contributed Kr371,726 crore Central tax revenue in 2020-21, and Kr202,937 crore state taxes or value added tax (VAT).
A further rise in the price of car fuel is expected as international crude prices move north again and the value of the rupee falls against the dollar. India imports more than 80% crude oil, it processes and pays in dollars. In Delhi, central taxes account for over 32.5% of the petrol price and state taxes (VAT) 23.07%. On diesel, the central excise duty is over 35.8%, while VAT is more than 14.6%.
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