New Delhi: Days after the central government announced excise duty cut on the fuel prices, fuel prices have further risen Monday after an initial hike on Sunday. The Union government had announced Rs. 2.50 per litre cut in prices, however, today, petrol prices in the national capital rose to Rs 82.03, up from Rs 81.82 (increase by 0.21 per litre) and diesel prices retailed at Rs 73.82, up from Rs 73.53 (increase by 0.29 per litre).
The crude oil prices are at a four-year high, which is why the two fuels have started turning costlier again. Petrol prices had earlier hit an all-time high of Rs 84 per litre in Delhi and Rs 91.34 in Mumbai, forcing the government to take measures.
Oil prices on Monday (in 4 major cities)
- Delhi: Petrol Rs 82.03 per litre, up 21 paise; diesel Rs 73.82 per litre, up 25 paise
- Mumbai: Petrol Rs 87.50 per litre, up 21 paise; diesel Rs 77.37 per litre, up 31 paise
- Chennai: Petrol Rs 85.31 per litre, up 27 paise; diesel Rs 78.09 per litre, up 36 paise
- Kolkata: Petrol Rs 83.87 per litre, up 21 paise; diesel Rs 75.67 per litre,29 paise
The BJP-ruled states had cut the VAT levied on the two fuels by Rs 2.50 paise a litre, as requested by the Centre, to ease the cost burden on consumers by Rs 5 a litre. The non-BJP ruled states did not reduce VAT and have instead been demanding a bigger excise duty cut from the Centre on the two fuels even as the issue has assumed importance in the run-up to the polls. Delhi still has the lowest prices for petrol and diesel among metros despite the Kejriwal government not cutting VAT.
Mumbai, on the other hand, continues to be the costliest. Experts say state-owned fuel retailers absorbing Re 1 per litre price would mean around Rs 9,000 crore hit on profits on an annualised basis. The government’s revenue would also be impacted by Rs 10,000 crore.
On September 4, Jaitley had announced a cut of Rs 2.50 per litre on both petrol and diesel prices and directed the state governments to implement the same.