Petrol pump sales have jumped by a fifth this month after bulk users like bus fleet operators and malls queued up at petrol bunks to buy fuel rather than the usual practice of ordering directly from oil companies, widening the losses of retailers.
In the past several weeks, the prices of crude oil in the international market had reached up to $140 per barrel, most recently last week. Though it fell down to $110 again but it's still way more than $80 per barrel earlier, causing losses to public sector companies as the government is not allowing petrol, diesel prices to rise for over 120 days now, says Dr. Sudhir Bisht, International crude oil expert.
West Texas Intermediate crude futures, the US oil benchmark, rose to USD 130.50 per barrel on Sunday evening, its highest since July 2008, before retreating.
With international oil prices - on which domestic fuel retails are directly benchmarked - spiking in the last two months, state-owned fuel retailers "need a massive price hike of Rs 12.1 per litre on or before March 16, 2022, just to breakeven and a price hike of Rs 15.1 is required" after including margins for oil firms, ICICI Securities said in a report.
The basket of crude oil India buys rose above USD 102 per barrel on March 1, the highest since August 2014. This compares to an average of USD 81.5 per barrel price of the Indian basket of crude oil at the time of freezing of petrol and diesel prices in early November last year.
Russia-Ukraine crisis is going to impact oil and gas prices across the world, which is already at a 7-year high at present, and impact the value of the Indian rupee, therefore, if our value depreciates, then commodities prices are going to get impacted.
The increase in the annual cost of living, as measured by the household living-costs price index, was the highest recorded since the series began in 2008 for seven out of the 13 household groups, said Stats NZ, New Zealand' statistics department.
The latest decision to keep petrol and diesel prices unchanged is the longest duration of no-change in prices since the daily price revision was introduced in June 2017.
Posters of 'No Mask No Petrol' have been put up at the petrol pump. Petrol pump employees are seen advising people without masks to wear one.
"How do you look at economic development, progress?... There has been record hike in capital expenditure. That is what is economic progress is," Hardeep Singh Puri said responding to the question on Gandhi's tweet of November 1 that cautioned against "pickpockets" as he charged the government of "profiteering" from record-high fuel tax and "fleecing" common man.
Chief Minister Charanjit Singh Channi made the announcement while addressing the media after the cabinet meeting. "We are reducing petrol rate by Rs 10 per litre and diesel rate by Rs 5 per litre from midnight," CM Channi said.
The most reduction in the Petrol prices has been in Karnataka, followed by Puducherry and Mizoram. The prices of Petrol in these states have come down by Rs 13.35, Rs 12.85 and Rs 12.62 respectively, the release further added.
In a statement, Sharad Pawar said, "If the Centre disburses the GST compensation to all the states, then it is possible for the state governments to reduce the VAT on petrol and diesel and implement other welfare schemes."
The government on Wednesday cut excise duty on petrol by Rs 5 per litre and that on diesel by Rs 10 a litre to give reprieve to consumers battered by record-high retail fuel prices. Since states charge local sales tax or VAT not just on the base price but also on the excise duty levied by the Centre, the total incidence of price reduction is higher. The reduction was larger in states with higher VAT.
Petrol will cost Rs 103. 97 per litre in Delhi against Rs 110. 04 per litre, according to a price notification of state-owned fuel retailers. Diesel rates accordingly will reduce to Rs 86. 67 per litre from Rs 98. 42 per litre
"This decision taken by Modiji will not only lighten the burden on the pocket of the common man but will also prove to be a great help in controlling inflation," Rajnath Singh further said.
"The state government has decided to reduce the VAT by Rs 7 and Rs 2 respectively on petrol and diesel," Additional Chief Secretary Navneet Sehgal said
After Assam, Tripura Chief Minister Biplab Kumar Deb on Wednesday announced that petrol and diesel prices in the state will be reduced by Rs 7 effective from November 4 (Thursday).
After the Centre on Wednesday reduced excise duty on petrol and diesel, Assam Chief Minister Himanta Biswa Sarma has announced a reduction in VAT on fuel by Rs 7 with immediate effect.
Petrol and Diesel prices have been cut across the country after the central government reduced excise and states slashed VAT charges. Excise duty has been reduced by Rs 5 on petrol and Rs 10 on diesel while deduction in VAT varies from state to state.
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