Petrol and diesel prices differ from state to state depending on the incidence of local taxes such as VAT and freight charges. (Representative image)
Petrol and diesel prices remained unchanged for the seventh consecutive day on July 24, according to a price notification by state-owned fuel retailers. The week-long stability came after the prices of the two fuels witnessed a record high earlier.
The last increase had taken the petrol price in Delhi near Rs 102 per litre-mark. The petrol price in the national capital soared to Rs 101.84 a litre. Diesel prices retailed at Rs 89.87 per litre, according to Indian Oil Corporation Limited‘s (IOCL) price listing.
In Mumbai, the petrol price remained unchanged and retailed at Rs 107.83 a litre. The financial hub, on May 29, became the first metro in the country where petrol was being sold for more than Rs 100 per litre.
Diesel price also remained the same and sold at Rs 97.45 per litre in Maharashtra’s capital.
The fuel prices remain the same in Kolkata, where the prices of a litre of petrol and diesel were Rs 102.08 and 93.02, respectively.
Chennai also retailed a litre of petrol at the same price — Rs 102.49. Diesel price also remained unchanged at Rs 94.39 per litre in Tamil Nadu’s capital.
Fuel prices differ from state to state depending on the incidence of local taxes such as VAT and freight charges. Rajasthan levies the highest VAT on petrol and diesel in the country, followed by Madhya Pradesh, Maharashtra, Andhra Pradesh and Telangana.
The excise duty rates on petrol and diesel have been calibrated to generate resources for infrastructure building and other developmental expenditure keeping in view the prevailing fiscal situation, Minister of State for Finance Pankaj Chaudhary said on July 20. In a written reply to a question in the Rajya Sabha, the minister said the petrol price had gone up by Rs 3.83 a litre in May, Rs 4.58 in June and Rs 2.73 in July (up to July 16).
In April, the prices of petrol and diesel were revised down by Rs 0.16 and Rs 0.14 a litre, respectively. The retail selling price of diesel rose by Rs 4.42 a litre in May, Rs 4.03 in June and Rs 0.69 in July (up to July 16).
Domestic fuel rates are benchmarked to international oil prices as India is 85 percent dependent on imports to meet its oil needs. International rates have surged since last month on a rebound in consumption. The relentless price increase has pushed petrol rates above the Rs 100-a-litre mark in most places in 15 states including Rajasthan, Madhya Pradesh, Maharashtra, Andhra Pradesh, Telangana, Karnataka, Odisha, Tamil Nadu, Kerala, Bihar and Punjab and at a couple of districts in Uttar Pradesh and Haryana.
Rates are also above the sensitive Rs 100 per litre level in four Union Territories including Delhi, Jammu and Kashmir and Ladakh. Diesel, the most used fuel in the country, is above that level in some places in Rajasthan, Odisha and Madhya Pradesh.
As much as 55 percent of the retail selling price of petrol in Delhi is made up of taxes (Rs 32.90 a litre excise duty collected by the central government and Rs 22.80 VAT levied by the state government). Half of the diesel price is made up of taxes (Rs 31.80 central excise and Rs 13.04 state VAT). Source