NEW DELHI: Public sector oil manufacturing companies on Tuesday slashed petrol and diesel prices by 13 paise per litre and 9 paise per litre, respectively.
Petrol was priced at Rs. 77.83 in New Delhi, Rs 80.47 in Kolkata, Rs 85.65 in Mumbai and Rs 80.80 in Chennai on Tuesday.
A litre of diesel was priced at Rs 68.88 in Delhi, Rs 71.43 in Kolkata, Rs 73.33 in Mumbai and Rs 72.72 in Chennai on Tuesday.
Prices vary from State to State depending on local sales tax or VAT. Delhi has the cheapest price among all metros and most State capitals.
The petrol price have come down by upto 60 paise in the past seven days, whereas, the rate of diesel came down by upto 45 paise.
After the 1 paisa reduction in fuel prices on May 30, which caused much criticism from the Opposition, prices have since fallen continuously. Since June 1, it has come down by 39 paise for petrol and 28 paise for diesel.
India’s oil price is the fourth highest among the top 10 crude-oil consuming nations.OPEC alone can’t shoulder the blame for fuel price hikes.
Petrol products are a major source of tax income for central and state governments and petroleum product taxes are levied at two levels.
The government gathers an excise tax and every state levies a Value Added Tax (VAT) on the fuel sold.
The excise fee is an indirect tax while VAT varies depending on the value of the product or service at each stage of production or distribution.The fuel price includes the state VAT, the central excise tax, plus the dealer’s price and commission.
