Petrol price in Delhi crosses ₹80.50 mark, diesel at highest ever1 min read . Updated: 09 Sep 2018, 03:38 PM IST
The increase pushed the petrol price in Delhi to 80.50 per litre. Diesel rate touched its highest level of 72.61 a litre
New Delhi: Petrol and diesel prices set new records on Sunday as they continued their upward march on fall in rupee and surge in global crude oil rates.
Petrol price was Sunday raised by 12 paise a litre and diesel by 10 paise per litre, according to the price notification issued by state fuel retailers.
The increase pushed the petrol price in Delhi to ₹ 80.50 per litre. Diesel rate touched its highest level of ₹ 72.61 a litre. Fuel prices in Delhi are the cheapest among all metros and most state capitals due to lower taxes.
Opposition parties have called for a nation-wide ‘Bharat Bandh’ on Monday (10 September) to protest against the spiralling fuel prices. They blame the government’s unwillingness to cut excise duty for the high fuel prices and consumer burden.
Since mid-August, petrol price has risen by ₹ 3.42 a litre and diesel by ₹ 3.84 per litre as rupee hit record low against the US dollar, making imports costlier. Almost half of the retail selling price of the two fuels is made up of central and state taxes.
According to oil companies, petrol at refinery gate costs around ₹ 40.50 a litre and diesel ₹ 43. The Centre currently levies a total excise duty of ₹ 19.48 per litre of petrol and ₹ 15.33 per litre on diesel.
On top of this, states levy Value Added Tax (VAT) — the lowest being in Andaman and Nicobar Islands where 6% sales tax is charged on both the fuels. Mumbai has the highest VAT of 39.12% on petrol, while Telangana levies the highest VAT of 26% on diesel. Delhi charges a VAT of 27% on petrol and 17.24% on diesel.
The Central government had raised excise duty on petrol by ₹ 11.77 a litre and that on diesel by 13.47 a litre in nine installments between November 2014 and January 2016 to shore up finances as global oil prices fell, but then cut the tax just once in October last year by ₹ 2 a litre.
This led to its excise collections from petro goods more than doubling in the last four years — from ₹ 99,184 crore in 2014-15 to ₹ 2,29,019 crore in 2017-18. States saw their VAT revenue from petro goods rise from ₹ 1,37,157 crore in 2014-15 to ₹ 1,84,091 crore in 2017-18.