Days 11 Hikes: Petrol And Diesel Prices Rise Once Again

Fuel price hike continues on Day 12 Petrol at 85.65 in Mumbai Diesel at 73.20

Petrol touched Rs 85.65 in Mumbai today

Petrol and diesel prices across the country were raised for the eleventh consecutive day today with Oil Marketing Companies (OMCs) passing on the increase in global fuel prices to the consumers.

Breaching the previous records, petrol and diesel prices in Patna on Wednesday climbed to Rs83.01 and Rs72.99 per litre, respectively. With an increase of 38 paisa per litre for petrol, it is now at Rs. 82 per litre in the capital city.

"During the year 2015 when the Union govt reduced the rates of petrol and diesel by Rs 2 per litre, Delhi govt immediately raised Value-Added Tax on 14 July, 2015 on petrol from 20% to 25% and on diesel from 12.5% to 16.6%".

Union Minister Nitin Gadkari had said that subsidising petrol and diesel to bring down their retail prices will take money away from government's social welfare schemes. This is happening because the petrol and diesel prices are broadly determined on the basis of crude oil price in the worldwide market and on the rupee-dollar exchange rates.

There seems to be no respite from the boiling fuel prices in the country.

The pump price of the two locally-refined fuels also include import tax on the two products which the government could tinker with to help customers, industry sources say.

Fadnavis' comment came amidst rising prices of petrol and diesel over which the opposition has been targeting the Narendra Modi government. However, in Telangana, the tax rate is 35.02% on Petrol and 27% on Diesel.

Among the proposals being discussed is that OMCs, too, should be asked to take a small hit by way of compensating petrol and diesel dealers a cut in their commission. If we talk of J&K government then the government here is charging 21 % sales tax /VAT on petrol and 14.5 % on diesel.

Hike in Petrol and diesel prices across the country continued for the eleventh consecutive day on Thursday.

Meanwhile, the Congress party workers were protesting against rising fuel prices and demanded the petroleum products should be brought under the ambit of Goods and Services Tax (GST). Earlier, I used to spend Rs 6,000-7,000 on my petrol budget, now I spend almost Rs 10,000.

Oil and gas sector analysts have over the past week said fuel prices will go up by an additional Rs 4 per litre as the Oil Marketing Companies (OMCs) try to recover their marketing margins, which came under pressure when OMCs collectively initiated a price freeze for 19 straight days before the Karnataka elections.

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