New Delhi: After a long weekend to celebrate Holi, the price of Petrol and diesel were slashed again after four days of revision. The oil marketing companies have reduced the price of petrol by 22 paise while diesel prices were cut by 23 paise in Delhi.
The government-owned Indian Oil Corporation’s (IOCL) website shows that petrol will now be retailed for Rs 90.56 per litre and diesel will now cost Rs 80.87 per litre in New Delhi. The prices were Rs 90.78 per litre for petrol and Rs 81.10 per litre for diesel, respectively.
The price cuts in 2021 have come after a 12-day rally of fuel price hikes in February. On the back of softening Crude oil prices in the international market. The price of crude per barrel fell below $60 after rating agency S&P revised GDP growth numbers in the US. Amid worries of a second wave of COVID-19 pandemic and the uneven pace of vaccination programmes have left the investors with short-term demand concerns. The news of partial lockdowns in India and muted buying from China has dampened the international sentiment of complete demand recovery in short term.
Indian OMCs follow a daily dynamic pricing mechanism, their rates fluctuate with global crude prices and forex rates. India currently imports more than 80 per cent of its crude requirements.
Check out the price of petrol and diesel here:
|City||Petrol (Rs/litre)||Diesel (Rs/litre)|
Source: Indian Oil Corporation
Rates vary across the country and depending on the local incidence of taxation (VAT) levied by state governments.
The fuel prices in India dropped after more than a year, after oil marketing companies on March 24 slashed prices. The retail price of petrol and diesel was finally cut by 18 paise and 17 paise, respectively.
As per Budget estimates for FY 2021-22, the Centre is estimated to collect Rs 3.61 lakh crore as ‘Union Excise Duties’, as against Rs 2.67 lakh crore it collected in FY 20. Fuel taxes in India are among the highest in the world as collectively excise and state taxes (VAT) account for more than 60 per cent of fuel retail price.
Union Finance Minister Nirmala Sitharaman during her budget speech announced of Agriculture Infrastructure and Development Cess (AIDC) of Rs 2.5 per litre on petrol and Rs 4 per litre on diesel.