Petrol, Diesel prices hiked for 14th straight day, Mumbai at record high

Ann Santiago
May 28, 2018

Today the petrol price of New Delhi has touched a new high of Rs 77.97 per litre higher by 14 basis points compared to previous day price of Rs 77.83 per litre.

Petrol and diesel prices across the country were raised for the 15th straight day today with Oil Marketing Companies (OMCs) passing on the increase in worldwide fuel prices to the consumers. Voices against the Centre's tax on petrol and diesel are becoming common now. The government will have to desperately intervene in the problem posed by rise in global oil prices.

More than eight pence per litre was added to average pump prices between March 26 and May 23 at the big four supermarkets, RAC Fuel Watch data shows. Brent, the benchmark worldwide rate for petrol, continues to remain in the high range increasing the pressure on the government to cut excise duty on petrol and diesel. "We are trying to control the prices". Oil producers who get paid worldwide rates for the oil they produce from domestic fields, would have to part with any revenue they earn from prices crossing $70 per barrel.

Union Minister Nitin Gadkari had said that subsidising petrol and diesel to bring down their retail prices will take money away from government's social welfare schemes. In December, 2017 crude price for Bent was $ 66.2 per Barrel which came down to $ 60 in 2018.

And even as the opposition slams the government in New Delhi, reports say none of the opposition CMs in states like Punjab and Karnataka have even tabled the matter in all their meetings so far.

"When crude prices were falling from November 2014, the repeated increase of duty was a strategic error of the government".

He also asked the Odisha government to reduce Value-Added Tax on petroleum products to contain the cascading effect of rising fuel prices.

The government raised excise duty nine times between November 2014 and January 2016 to shore up finances as global oil prices fell, but then cut the tax just once in October past year by Rs2 a litre. The Centre's excise tax is much more than the state's tax.

The ruling Biju Janata Dal (BJD) has made a decision to stage demonstrations across Odisha for three days against the steep rise in fuel prices.

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