This is the second price cut of petroleum this month by the oil companies with the prices of Petrol and Diesel slashed by Rs. 2 per liter, excluding the local levies, but despite of the price cut the petrol will become costlier in the capital city of India due to increase in VAT applied by the AAP government in Delhi. The price of the petrol will remain lowest in Goa though. This new announcement from the petroleum companies will be applicable from midnight of 15th July 2015.
While the price cut will benefit rest of the country, but people of Delhi will not be able to enjoy the benefits of this cut due to VAT applied by the Kerjrival government on the fuels, robbing the consumer of reduction. Based on the above, the price of petrol will go up by 28 paisa a liter in Delhi compared to rest of the country due to hike in VAT on fuel from 20 percent to 25 percent. Similarly the diesel prices in Delhi will also remain high due to the VAT increase from 12.5 percent to 16.6 percent. Presently the petrol price in Delhi is 66.62 which will be raised to 66.90 from tomorrow while Diesel price will come down from present rates of 50.22 to 49.72 per liter said IOC the largest oil company of the nation. “Prices of petrol and diesel were last revised w.e.f. 1st July’15. Since last price change, there has been a decrease in international prices of both Petrol & Diesel. INR-USD exchange rate has also appreciated during this period. Combined impacts of both these factors warrant the said downward revisions,” it said.
The last cut came on July 1 whereby the price of petrol was reduced by 31 paise and Diesel by 71 paisa, “Since last price change, there has been a decrease in international prices of both petrol and diesel. Indian rupee-US dollar exchange rate has appreciated during this period. Combined impact of both these factors warrants a downward revision in prices, the impact of which is being passed on to the consumers with this price decrease,” IOC said. Whatever the scenario elsewhere, the prices of the petrol will always remain cheapest in Goa due to the existence of BJP government who at least fulfilled their one promise by removing the VAT from petrol. Please do not forget to leave your comments and suggestions on this issue.