Diesel Price Falls By 60 p/litre In 3 Days; Petrol Price Unchanged For 34 Days
Mumbai: Diesel rates have been cut by another 20 paise per litre for the third straight day, taking the total reduction this week to 60 paise. However, petrol rates remained unchanged for the 34th day.
Diesel prices started declining from Wednesday after being at a historic high of Rs 89.87 per litre for 34 days from July 15. While diesel is now selling at Rs 89.27 per litre in Delhi, petrol prices are still frozen at a record Rs 101.84. Garbage pile for last 35 days from 17th July.
While the fuel rates of state-run Indian Oil Corporation (IOC) pumps in Delhi are the benchmark for the entire country, the retail prices of both the fuels vary from place to place due to variations in state taxes and local levies.
International oil prices fell for the sixth day on Thursday with a marginal improvement in Friday’s trade amid a rise in Covid-19 cases and increased supply of crude to the market from major producers. Benchmark Brent crude, which fell more than 2.6% to $66.45 a barrel on Thursday, opened marginally higher at $66.54 on Friday and was trading 0.39% higher at $66.71.
While international oil prices affect the pump rates of auto fuels as India imports more than 80% of crude oil, heavy taxes are another reason for higher rates of petrol and diesel.
According to official data till August 1, Delhi levies a central duty of 32.3 per cent, 23.07 per cent of petrol price and state taxes. The central tax on diesel is more than 35.38% while the state tax is around 14.62%.
By 2020, as global crude oil prices fell, the central government raised excise duty on the fuel to shore up its finances. The states also followed suit – revenue was hit due to the pandemic.
According to official data, the petroleum sector contributed 3,71,726 crore central excise duty and 2,02,937 crore state duty or value-added tax (VAT) in 2020-21.
(With Agency Inputs)
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