Petrol Prices Almost Touch Rs 90 In This City

Petrol prices

Petrol prices

A breakup of retail price on Monday shows that total of Central and Excise levies on petrol was almost 91 per cent of prices charged to dealer while it was almost 59 per cent in the case of diesel.

The fuel prices continued its northward march and set fresh highs on Tuesday morning, with the price of Petrol in New Delhi is Rs. 80.87, in Kolkata for Rs. 83.75, in Mumbai for Rs. 88.26, and in Chennai for Rs. 84.07, according to the largest fuel retailer, Indian Oil Corporation (IOC).

The AP govt will incur a revenue loss of Rs 1,120 crore with the slashing of petrol and diesel prices.

Why are the retail prices of petrol and diesel higher in India?

Apart from a 25% Value Added Tax (VAT) on petrol and 21% on diesel, the Maharashtra government has also introduced cess of Rs 9 and Rs 1 on petrol and diesel, respectively.

The government, he said, anticipates that global oil prices, which together with a drop in the value of rupee has been fuelling the fuel price rise to record levels, will moderate in coming days to take pressure off. A record depreciation in rupee and about $7 a barrel rise in crude oil prices in about a month have pushed up fuel prices in the country.

The countries which are tax compliant and earning more from non-oil have lower taxes on oil, he said in response to the criticism that many developing countries, specifically neighbouring countries, sell petrol-diesel cheaper than India.

Nearly half of the retail selling price of the two fuels is made up of central and state taxes.

In Delhi, petrol costs Rs 80.87 and diesel Rs 72.97.

As it stands, the sales tax the state has imposed on petrol is 30.37 per cent, and that on diesel is 23.81 per cent. The petitioner, through her counsel A Maitri, has also alleged that fuel prices are politically controlled. Petrol and diesel prices are going up, the state government will certainly come up with some measures like last time, Kesarkar said. The extra benefit accrued to states is Rs 3-4 per litre, he said.

In an election year, the spending cut is not an option, the official said reasoning that it would hamper the government's spending on development schemes. Petroleum Minister Dharmendra Pradhan's statement that it was not possible to reduce the prices was 'irresponsible.' The popular support to the bandh call given by the Opposition speaks volumes of public anger and resentment, he said.

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