Petrol prices see another cut: Here's what you will pay in top cities today

This is the tenth consecutive cut in petrol prices. Diesel prices have also been cut consecutively, barring a day when its prices remain unchanged

Fuel prices, for the tenth consecutive day, was marginally lowered on Friday. As per prices announced by largest retailer Indian Oil Corp (IOC), petrol prices fell around 21 paise in the four metro cities, while diesel prices were down by around 15 paise.

In Delhi, petrol per litre on Friday cost Rs 77.42, down from 77.63 on Thursday. Similarly, in Mumbai and Kolkata, petrol prices were at Rs 85.24 and Rs 80.07 a litre respectively. In Chennai, petrol fell by 22 paise to Rs 80.37 per litre.

Diesel prices were down by 15 paise in Delhi, Mumbai and Kolkata. In Chennai, its price was down by 16 paise.

On Thursday, petrol prices were reduced by 9 paise, while diesel prices were cut by 7 paise in Delhi.

Even after ten consecutive price cuts, fuel prices continue to remain at high levels following the resumption of daily price changes after a 20-day suspension of the system last month owing to the Karnataka elections.

After 16 consecutive days of hike post the elections, petrol prices had touched the peak of Rs 78.43 per litre in Delhi and Rs 86.24 per litre in Mumbai on 29 May.

Since then, prices have seen a downward revision of Rs 1.01 in Delhi to be priced at Rs 77.42 on Friday.

Speaking to media on Thursday, Petroleum and Natural Gas Minister Dharmendra Pradhan said the government was looking into various factors involved in oil prices- the taxes of the Centre and states, the management of exchange rate, global geopolitical triggers - to further bring down the oil prices.

He also said that state owned oil industry was losing Rs 200 billion annually in terms of input credit as petrol and diesel were kept out of the purview of GST. “All the expenditure of the oil industry- refinery, pipeline, exploration, are paying GST (for various transactions). I am not getting back that money, the input credit. So I am making it costly. I am losing Rs 200 billion per annum, only by government companies, in input credit. So it is just a matter of time (before petrol and diesel are brought under GST)”, Pradhan said.

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End to relentless petrol, diesel price rise brings no joy as cuts minuscule

These small cuts contrast against the nearly Rs 4 per litre rise in petrol prices during May 14-29, with the daily hike in prices varying around 15-30 paise a litre

High fuel prices have burnt a hole in the common man's pockets. With mounting frustration, rates have been cut for the third consecutive day today. However, this is likely to be cold comfort for most given that the reduction in prices has been minuscule. Prices for petrol and diesel fell by 6 paise and 5 paise per litre, respectively, on Friday. After a one paisa cut in fuel prices, petrol prices across the four metros were cut on Thursday by seven paise a litre and diesel prices fell by five paise.

Petrol now costs Rs 78.29 per litre in Delhi, while the price of diesel has been revised to Rs 69.20 a litre. The revised Petrol prices in other metro cities are -- Rs 80.92 in Kolkata, Rs 86.10 in Mumbai, and Rs 81.28 in Chennai. The revised diesel prices are Rs 71.75 in Kolkata, Rs 73.67 in Mumbai, and 73.06 in Chennai.

How does this measure up against the previous hike in petrol prices? These cuts contrast against the nearly Rs 4 per litre rise in prices during May 14-29, with the daily hike in prices varying around 15-30 paise a litre. Similarly, diesel prices in all the four metros also were at record levels during the period.

A direct comparison of prices brings home the point. In the national capital on Thursday, petrol was sold at Rs 78.35 per litre, down from Rs 78.42 on Wednesday. Compared to Friday's prices, that is just a 13 paise difference in the favour of the consumer.

On Thursday, in the other key cities of Kolkata, Mumbai, and Chennai, the fuel was priced at Rs 80.98, Rs 86.16, and Rs 81.35 a litre, respectively. All these prices were down by seven paise from Wednesday's levels.

On Thursday, diesel prices in Delhi, Kolkata, Mumbai, and Chennai stood at Rs 69.25, Rs 71.80, Rs 73.73, and Rs 73.12 per litre, respectively.

After 16 days of relentless price hikes that followed lifting of a nearly three-week hiatus on price revision just before Karnataka went to polls, petrol and diesel prices were cut for the first time on Wednesday. However, the quantum of reduction was just one paisa.

Why the cuts after 16 days of hikes?

The reductions follow softening of international oil rates and the rupee gaining against the US dollar.

According to Reuters, crude oil futures lost more ground on Friday, with the US market set for a second week of decline on pressure from record US production and expectations of the Organization of the Petroleum Exporting Countries (OPEC) boosting output. Global benchmark Brent crude, which was little changed in the previous session, was down 9 cents, or 0.1 per cent, to $77.47 per barrel.

On Thursday, Brent crude was priced around $77 per barrel.

The Finance Ministry has reportedly pinned its hopes on further reduction in global crude oil prices. Economic Affairs Secretary Subhash Chandra Garg on Thursday indicated that the retail prices of petrol and diesel could see a further decline. When asked about the mere 1 paise reduction in petrol prices announced by oil companies on Wednesday, Garg termed it "formula driven", but added that the trend for reduction had begun.

'Petrol, diesel prices may stay high in immediate future': 10 points

Even as people across India see rising fuel prices burning a hole in their pockets, the price of petrol has touched Rs 85 a litre in Mumbai and Rs 77.17 a litre in Delhi

Petrol and diesel will continue to burn a hole in your pocket as Hindustan Petroleum Corporation Limited (HPCL) Chairman and Managing Director Mukesh Kumar Surana has told news agencies that fuel prices might remain high in the immediate future. Petrol prices in the country's financial capital, Mumbai, touched Rs 84.99 a litre on Wednesday, while the fuel's price inched higher to a new record of Rs 77.17 in Delhi. In Delhi, Kolkata, Mumbai, and Chennai, diesel was sold at Rs 68.34, Rs 70.89, Rs 72.76, and Rs 72.14 per litre, respectively.

As of Wednesday, one trigger after another had led to the 10th consecutive day of increase in retail selling price of petrol and diesel. As frustrations mounted across the country, Union Law & Justice, Electronics, and Information Technology Minister Ravi Shankar Prasad on Wednesday said that the Narendra Modi government was working on a long-term plan to tame fuel prices. "Instead of an ad-hoc measure, the government wants to have a long-term view that addresses not only volatility but also takes care of the unnecessary ambiguity arising out of frequent ups and downs," Prasad said.

The government has come under attack from the Opposition as fuel prices have gone up day after day. Former finance minister P Chidambaram claimed that the rates could be reduced by Rs 25 per litre but the government was not doing so. "It is possible to cut up to Rs 25 per litre, but the government will not. They will cheat the people by cutting price by Re 1 or Rs 2 per litre of petrol," he said in a Tweet.

Here are ten top points on rising petrol and diesel prices:

1) Congress protesting in Mumbai today as petrol nears Rs 85 a litre: The Congress targeted the Narendra Modi-led government at the Centre over high fuel prices, seeking to know why the petrol and diesel rates have gone up despite a fall in international crude oil prices. The party said it would hold a protest in Mumbai on Thursday over the matter. Mumbai Congress president Sanjay Nirupam said the residents of the city are paying the highest in the country for petrol and diesel.

Petrol prices in Mumbai touched Rs 84.99 a litre on Wednesday, while diesel was sold at Rs 72.76 per litre.

2) HPCL chief says review taxes on petrol, diesel: HPCL CMD Mukesh Surana on Wednesday said that there is a need to review taxation on petrol and diesel to provide relief to consumers. According to Surana, the solution has to be found while balancing the budgets of oil companies, the consumer, and the government.

3) 'Petrol, diesel prices might stay high in immediate future': In the immediate future, fuel prices might stay high, Surana told news agency ANI. He said that there is an Organization of the Petroleum Exporting Countries (OPEC) meeting scheduled to take place soon from where some triggers might come. "If OPEC countries increase production of oil, that could help fix the perception of high demand and less supply," he said.

Modi has an oil price headache and Saudi Arabia may just make it worse

Saudi Arabia is aiming for $80 to support the valuation of Saudi Aramco before an initial public offering

 

 

India’s Prime Minister Narendra Modi has an oil problem. And it’s set to worsen with Saudi Arabia rooting for the commodity to push through the $80 barrier.

Modi’s government made the most of cheap oil by substituting any fall in prices with taxes that kept retail fuel rates unchanged for consumers and boosted the federal revenue. Now, pressure is mounting to forego some of that windfall as pump prices of gasoline and diesel hit records, likely marring the ruling party’s prospects at the national ballot in 2019.

“There is a strong case for the central government to take another excise duty cut, and ask state governments to reduce value added tax,” Anil Sharma and Ravi Adukia, analysts at Nomura Financial Advisory and Securities India Pvt. wrote in a note Tuesday.

Fuel prices have started to pinch as Brent, the benchmark for more than half of the world’s oil, hit $80 a barrel last week. It’s still short of its all-time high of $147.50. But cutting local taxes, which account for more than half of the retail gasoline and diesel prices, would stretch government finances at a time when the subsidy burden on kerosene and cooking gas is climbing.

Assuming an average oil price of $70, the fiscal 2019 subsidy would total about 355 billion rupees, or 105 billion rupees higher than budgeted, according to Kotak Institutional Equities. Meanwhile, Moody’s Investors Service estimates that fuel subsidies could total 340-530 billion rupees in fiscal 2019, the highest since fiscal 2015, if Brent crude oil prices average $60-$80 per barrel.

While Saudi Arabia has avoided pinpointing an exact price target for oil, Bloomberg reported citing people familiar with development that it is aiming for $80 to support the valuation of Saudi Aramco before an initial public offering.

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Petrol, diesel may get costlier in Delhi; higher rental to affect 400 pumps

The combined impact on fuel retailing outlets is estimated at Rs 12 billion

Delhiites might soon have to pay more for motor fuel, a sequel to an earlier decision by the Delhi Development Authority (DDA), the land allotment agency, putting outlets retailing these in the same commercial category as malls.

Sources say the resulting higher rentals might affect at least 400 outlets in DDA areas. The decision to raise land rentals with effect from 2007 has been contested by Hindustan Petroleum Corporation (HPC), Indian Oil Corporation (IOC) and Bharat Petroleum Corporation (BPC) in the Supreme Court. The case is in court for some months. Meanwhile, talks are on between the three oil marketing companies (OMCs) and DDA. Sources say if there is no agreement soon, the companies will be passing on the higher rentals.

The combined impact on fuel retailing outlets is estimated at Rs 12 billion. “We might have to pay the claim with retrospective effect and interest. We have been contesting this move, stating that selling of petrol and diesel cannot be categorised along with malls,” said an official.

As on Sunday, Delhi had the lowest fuel prices among all the four metros, with petrol priced at Rs 71.06 per litre and diesel at Rs 61.56 per litre.

Mumbai has the highest petrol price at Rs 78.94 and diesel at Rs 65.53....

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