Petrol and diesel prices go up for the first time in more than a month

The price of petrol in Delhi climbed to Rs 75.71 per litre from Rs 75.55 and diesel to Rs 67.50 a litre from Rs 67.38, according to price notification of Indian Oil Corp

 

Petrol and diesel prices were on Thursday hiked for the first time in more than a month on the back of rising international rates and weakening rupee.

The increase of 16 paisa a litre in petrol and 12 paisa per litre in diesel came after an 8-day self-imposed hiatus in rate revisions by state-oil firms in anticipation of softening international rates due to OPEC decision to raise output by 1 million barrels per day.

The price of petrol in Delhi climbed to Rs 75.71 per litre from Rs 75.55 and diesel to Rs 67.50 a litre from Rs 67.38, according to price notification of Indian Oil Corp (IOC).

The three state-owned fuel retailers, IOC, Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL) had not revised petrol and diesel prices since June 26.

“We had not changed prices for a few days in anticipation (of) OPEC decision to raise production leading to softening of international rates. But the 1 million barrels of additional production, which was to kick-in from July, has been overdone by the Iran issue,” IOC Chairman Sanjiv Singh told PTI.

While the OPEC last month decided to raise production, the US is piling pressure on India, China, and other buyers to end all imports of Iranian oil before a November 4 deadline in a bid to choke the Persian Gulf state’s economic lifeline with sanctions over its nuclear programme.

Singh said Iran produces around 2.3 to 2.5 million barrels per day and the world searching for alternates to replace those volumes has put pressure on the prices.

The decision to hold on to rates was taken without any elections looming around, he said, adding international prices have risen post-OPEC decision and oil companies have to “adjust retail rates accordingly”.

State-owned oil firms, who had in mid-June last year dumped 15-year practice of revising rates on 1st and 16th of every month in favour of daily price revisions, had last changed prices on June 26 when petrol price was cut by 14 paise and diesel by 10 paise.

In the preceding month, or so rates had been cut in line with dropping international rates. Prices had hit an all-time high of Rs 78.43 a litre for petrol and Rs 69.31 per litre for diesel on May 30.

ALSO READ: ‘With 28% GST on petrol and diesel, states too may levy additional taxes’

That peak had triggered demands for a reduction in excise duty but the government had ruled out any immediate cut.

The Centre currently levies a total of Rs 19.48 per litre of excise duty on petrol and Rs 15.33 per litre on diesel. On top of this, states levy Value Added Tax (VAT) – the lowest being in Andaman and Nicobar Islands where a 6 per cent sales tax is charged on both the fuel.

Mumbai has the highest VAT of 39.12 per cent on petrol, while Telangana levies the highest VAT of 26 per cent on diesel. Delhi charges a VAT of 27 per cent on petrol and 17.24 per cent on diesel.

The central government had raised excise duty on petrol by Rs 11.77 a litre and that on diesel by 13.47 a litre in nine instalments between November 2014 and January 2016 to shore up finances as global oil prices fell, but then cut the tax just once in October last year by Rs 2 a litre.

This led to its excise collections from petro goods more than doubling in last four years – from Rs 991.84 billion in 2014-15 to Rs 2.29 trillion in 2017-18. States saw their VAT revenue from petro goods rise from Rs 1.37 trillion in 2014-15 to Rs 1.84 trillion in 2017-18.

READ MORE : FUEL PRICE HIKE 

False alarm! Petrol prices down by just 1 paisa to Rs 78.43/litre in Delhi

Indian Oil says it published wrong prices in the morning

 

 

After news of a cut in petrol prices in the morning, India's biggest fuel retailer, Indian Oil has revealed that the announcement of a cut in prices it made earlier in the day was a mistake. It has revised the prices once again on its website.

IOCL informed ET Now that it had published wrong prices on its website earlier.

According to the Indian Oil Corporation website, petrol is now priced at Rs 78.42 per litre in Delhi. This is just 1 paisa lower than yesterday's price.

In Mumbai, petrol will be sold at Rs 86.23 per litre.

Earlier, it was reported that Indian Oil Corp had slashed the prices of petrol by 60 paise after 16 days of price hike. The new prices had been listed on their website as well. Petrol price in Delhi was cut by 60 paise to Rs 77.83 per litre.

The same is true for prices of diesel which were first reported to be cut by 56 paise today but now stand revised to just 1 paise less than yesterday's levels.

Looks like the joy was shortlived as prices are now back to yesterday's level.

'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.

Read More : Oil Price India 

Petrol, diesel price hike: Guide for middle-class Indians on fuel prices

For the tight-budgeted Indian, the petrol and diesel price hike is a serious damper. Here's a guide to petrol and diesel prices in pan India

As the fuel price hike was announced on Tuesday, common people were greeted with the highest petrol and diesel prices since September 2013. On Tuesday, petrol and diesel prices in Delhi touched a high of Rs 76.87 and Rs 68.08 a litre, respectively, while in Mumbai, petrol reached Rs 84.7 a litre and diesel at Rs 72.48, the highest ever. If taxes are kept unchanged, the retail price of petrol in Mumbai could cross Rs 90 per litre in the near future if crude oil touches $85 per barrel. This is based on the government’s statement that the crude oil price increase could add $50 billion to India’s oil import bill in 2018-19.

The Business Standard analysed that the retail price of petrol in Delhi may reach Rs 85 a litre, while that for diesel reach Rs 73 a litre.

For the tight-budgeted Indian, the petrol and diesel price hike is a serious damper. As the mercury continues to soar, people may have contemplated on a road trip to a hill station, or a family vacation as many school children are on summer vacation. However, a cautious traveller can keep a few things in mind before embarking on a journey:

Check fuel prices online

Consumers can visit the Indian Oil website. Once on the website, they can use the 'RO Locator' tool to locate the Indian Oil retail outlet nearest to them based on their location. The website displays prices of various products sold.

Check petrol, diesel prices through app:

* Indian Oil's mobile app, called "Fuel@IOC - IndianOil", also enables customers to check current prices.

* This mobile application by Indian Oil is available on both Google Play and Apple Store, for Android and iPhone smartphone users respectively.

"Bonanza to central government is Rs 25 on every litre of petrol. This money rightfully belongs to the average consumer. Central government saves Rs 15 on every litre of petrol due to fall in crude oil prices. It also puts additional tax of Rs 10 on every litre of petrol," he added.

As reported earlier, the Prime Minister's Office will on Wednesday take a final call on whether to cut excise duty on petrol and diesel.

Meanwhile, BJP President Amit Shah said that the issue will be resolved within three to four days.