Petrol price at four year high, diesel hits all time high on global cues
Petrol prices hit a four-year high on the first Monday of the new financial year at Rs 73.83 per litre, while diesel reached an all-time high at Rs 64.69 per litre. The hike in fuel prices come amid strengthening of global crude oil prices. The current hike in petrol is highest since September, 2013 when it jumped to Rs 76.
The Oil Ministry had earlier this year sought a reduction in excise duty on petrol and diesel to cushion the impact of rising international oil rates, but Finance Minister Arun Jaitley in his Budget presented on February 1 ignored those calls. India has the highest retail prices of petrol and diesel among South Asian nations as taxes account for half of the pump rates.
The excise duty had been raised nine times between November 2014 and January 2016 to shore up finances as global oil prices fell. The government had slashed tax just once in October last year by Rs 2 a litre. The excise duty cut cost the government Rs 26,000 crore in annual revenue and about Rs 13,000 crore during the remaining part of the current fiscal year.
State-owned oil companies - Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation - in June last year had dumped the 15-year old practice of revising rates on the 1st and 16th of every month. Now the rates are being revised on a daily basis based on changing global markets.
West Bengal Chief Minister Mamata Banerjee on Sunday hit out at the BJP-led central government for doing little to control the surge. Banerjee said the Centre was only “talking” while the people were suffering due to the surge in fuel prices.
The Oil Ministry had earlier this year sought a reduction in excise duty on petrol and diesel to cushion the impact of rising international oil rates, but Finance Minister Arun Jaitley in his Budget presented on February 1 ignored those calls. India has the highest retail prices of petrol and diesel among South Asian nations as taxes account for half of the pump rates.
The excise duty had been raised nine times between November 2014 and January 2016 to shore up finances as global oil prices fell. The government had slashed tax just once in October last year by Rs 2 a litre. The excise duty cut cost the government Rs 26,000 crore in annual revenue and about Rs 13,000 crore during the remaining part of the current fiscal year.
State-owned oil companies - Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation - in June last year had dumped the 15-year old practice of revising rates on the 1st and 16th of every month. Now the rates are being revised on a daily basis based on changing global markets.
West Bengal Chief Minister Mamata Banerjee on Sunday hit out at the BJP-led central government for doing little to control the surge. Banerjee said the Centre was only “talking” while the people were suffering due to the surge in fuel prices.