×

India

Petrol price slashed by 18 paise, diesel by 17 paise

This marked the first reduction in fuel prices this year after more than a year. Fuel prices were last reduced on March 16, 2020.

8226
Representational Image (Courtesy: Pexels)

New Delhi: The fuel prices in India dropped after more than a year, after oil marketing companies on Wednesday slashed prices. The retail price of petrol and diesel was finally cut by 18 paise and 17 paise on March 24 respectively. With the drop in the price, petrol will now be retailed at Rs 90.99, from Rs 91.17 per litre, while diesel will now be sold for Rs 81.30 down from Rs 81.47 per litre in the national capital region.

This marked the first reduction in fuel prices this year after more than a year. Fuel prices were last reduced on March 16, 2020. Since then the price of petrol and diesel have witnessed a jump of approximately Rs 20, in the last 13 months.

In Mumbai, the petrol is now retailed at Rs 97.40 while per liter of diesel costs Rs 88.42, according to the Indian Oil Corporation’s website.

Fuel prices hit record highs last month when prices continued to increase for 12 consecutive days in the national capital region till February 20. Then the prices saw a staggered increase, with the last revision on March 16. This led to prices shooting to Rs 100 per litre in Madhya Pradesh and Rajasthan. The prices have been on freeze since February-end, when Election Commission announced the poll dates for the five states.

The price comes after international prices tumbled and has remained below $60/barrel. The second wave of COVID-19 infection in the country has clouded the prospect of speedy recovery of oil consumption.

Check out the prices in your city:

City  Petrol (Rs/litre)  Diesel (Rs/litre)
 Delhi 90.99  81.30
 Mumbai 97.4 88.42
 Kolkata 91.18 84.18
 Chennai 92.95 86.29

Rates will vary across the country and depending on the local incidence of taxation (VAT) levied by state governments.

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.