Published: Sun, May 27, 2018
Finance | By Kristine Clayton

Petrol price crosses Rs 85 in Mumbai, no relief in sight

Petrol price crosses Rs 85 in Mumbai, no relief in sight

Prices of petrol and diesel have been continuously rising after voting to the Karnataka assembly election was held on May 12.

Petrol prices in Mumbai, Delhi and Chennai have already reached unprecendent levels, and are now setting a new benchmark every other day.

There have been 10 increases and three reductions in diesel prices, resulting in an increase of diesel price by Nu 10.17 a litre.

Noting that petrol and diesel prices are defined by worldwide crude oil rates, the chief minister said the GST Council will also have to look into aspects like revenue losses before taking a decision.

The Central government will take a long-term view on the retail pricing of petrol and diesel to shield consumers from volatility in global markets, the government said on Wednesday, suggesting it could change the way pump prices are calculated. The prices came into effect at 6 am today.

Every day seems to be a new record for the prices of petrol and diesel in India.

It is known fact that the crude oil prices determine the fuel rates in our country.

But the economic experts say that it is not possible.The Narendra Modi government has a fiscal deficit target of 3.2% for the fiscal year 2018-19. However, inspite of the fact that the present government introduced the deregulation of retail fuel prices yet the benefit of this step is not coming to consumer.

In Mumbai, petrol price touched a new high of Rs85.29 per litre and diesel climbed hit its highest ever level of Rs72.96 amidst the relentless rise in worldwide oil prices.

According to the finance ministry's revenue collection estimates, the central government collects more than Rs. 2.579 lakh crore by levying taxes on petroleum products. The fuel prices in the country are revised every fortnight. In Delhi, petrol costs Rs 77.17 a litre and diesel costs Rs 68.34 a litre. State sales tax or VAT varies from state to state. "We believe all petroleum products should come under the goods and services tax (GST)", said Sanjiv Singh, chairman of IOC.

India is known for its "high taxing framework" and crude prices are the victim of the same. The UPA government finally freed petrol price in June 2010 and the diesel rates were decontrolled by the current BJP government in November 2014.

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