This is the seventh cut in the petrol price and second hike in the diesel cost this month. The continuous hike in the diesel indicates the chances of lessening of the price gap between petrol and diesel in the near future.
According to the sources in the petroleum companies, the prices of petrol and diesel has once again been recapped and based on that the rate of petrol is come down by 3.02 per litre and price of diesel has been hiked by 1.47 per litre respectively. This new price structure will be applicable from Tuesday.
According to the new prices the cost of the petrol in Delhi will be Rs. 56.61 per litre against the earlier price of 59.63. Diesel, however, will cost 46.43 per litre compared to 44.96 per litre earlier based on the information provided by the IOC (Indian Oil Corporation) the largest fuel retailers in India.
[su_expand more_text=”READ MORE” less_text=” ” height=”0″ hide_less=”yes” link_style=”button” link_align=”center”] The sources have said that this is the seventh reduction in the petrol prices while the diesel prices have been hiked twice in this month itself. The earlier revision was done on the fuel prices last month only after the government raised excise duty to take away most of the benefit arising from fall in international oil prices.
According to the sources, the government had hiked the excise duty on petrol by Re 1 per litre and on diesel by Rs 1.50 per litre to cover up additional Rs. 3,200 crore during the remainder of the current fiscal. This was the fifth hike in excise duty since November 2015 that cumulatively gave the government Rs. 17,000 crore as an additional revenue. The five levy hikes total to Rs. 4.02 per litre on petrol and Rs. 6.97 on diesel.
“The current level of international product prices of petrol and diesel and Rupee-US Dollar exchange rate warrant decrease in the price of petrol and increase in the price of diesel, the impact of which is being passed on to the consumers with this price revision,” IOC said in a statement. State-owned fuel retailers IOC, Bharat Petroleum Corp (BPCL) and Hindustan Petroleum Corp Ltd (HPCL) revises the rates of the fuel on 1st and 16th of every month based on average oil price and foreign exchange rate in the preceding fortnight.
The revision was due on February 16 but the retailers chose to defer it by a couple of days. “The movement of prices in the international oil market and Rupee-USD exchange rate shall continue to be monitored closely and developing trends of the market will be reflected in future price changes,” IOC added.