The price of petrol and diesel remained unchanged as oil marketing companies kept the rates at pause on Wednesday after having touched new all-time highs the previous day. After seeing a hike on both the fuels for 12 consecutive days since February 9, state-owned oil companies managed to keep the prices steady for two successive days till Monday.
On February 24, petrol price in New Delhi was just 7 paise away from Rs 91 per litre. However, the price of petrol remained stagnant in all four metro cities. Currently, the price of petrol in New Delhi is at Rs 90.93 per litre and in Kolkata at Rs 91.12. While in Mumbai it is priced at Rs 97.34 per litre, the most expensive in four metro cities and in Chennai at Rs 92.97.
Similarly, the price of diesel, the most-used petroleum product by far in the country, is currently at Rs 81.32 per litre in New Delhi, in Kolkata at Rs 84.20 per litre. While it remains costlier in Mumbai at Rs 88.44 per litre and at Rs 86.37 in Chennai.
According to an Economic Times report, retail pump prices of petrol and diesel have shot up nationally due to heavy taxation, even as the price of crude oil prices harden globally. The report cited that Central and state taxes on both fuels should be rationalised, to further stem build-up of cost-push and inflationary pressures.
The report also mentioned the Reserve Bank of India (RBI) Monetary Policy Committee (MPC) stating in its latest minutes that, such high levels of indirect taxes are regressive. The Committee has called for ‘calibrated unwinding’ of high retail taxes in the main oil products.Due to the constant rise in rates since January this year, petrol and diesel prices have been reaching record highs in the country.
Higher retail taxation of automotive fuels stands true as the Central government makes up for Rs 32.98 per litre of the price of petrol in New Delhi and sales tax or VAT of the state government adds up to Rs 19.55. On diesel, the central excise adds up to Rs 31.83 and VAT to Rs 10.99. Additionally, the total price also includes a dealer commission of a minimum Rs 2.6 on petrol and Rs 2 on diesel per litre each.