No let-up in prices; fuel to cost rupee less in Bengal

NEW DELHI: Even a day after the Opposition called Bharat bandh there was no respite for consumers from skyrocketing fuel prices.

On Tuesday a 14 paisa per litre hike in petrol and diesel prices each took the rates to an all-time high, according to price notification of state-owned fuel retailers.

Petrol price in Delhi climbed to Rs 80.87 per litre, while in Mumbai it inched up to Rs 88.26. A litre of diesel in the national capital was priced at Rs 72.97 and Rs 77.47 in Mumbai.

Delhi has the cheapest fuel among all metros and most state capitals because of lower taxes. Mumbai has the highest sales tax or VAT.

Petrol in Chennai costs Rs 84.07 per litre and Rs 83.75 in Kolkata. Diesel is priced at Rs 77.15 per litre in Chennai and Rs 75.82 in Kolkata.

According to oil companies, refinery gate price of petrol, without considering any central or state tax and dealers commission, is Rs 40.45 per litre. The same for diesel is Rs 44.28.

Retail rates are high after adding excise duty, which is charged by the central government, commission paid to petrol pumps dealers and VAT, charged by state governments.

Dealer’s commission on petrol currently is Rs 3.34 per litre, and that on diesel is Rs 2.52.

While crude oil advanced 0.4 per cent to USD 67.78 a barrel, the relentless slide in rupee has added fuel to the fire. The currency fell to a new low of 72.7375 on Tuesday.

Since mid-august, petrol price has risen by Rs 3.79 a litre and diesel by Rs 4.20 per litre.

Meanwhile, after Rajasthan and Andhra Pradesh, West Bengal Chief Minister Mamata Banerjee on Tuesday announced that her government would slash the rates of petrol and diesel by one rupee per litre.

Banerjee, who is at the forefront in the fight against the Bharatiya Janata Party (BJP), made a political statement by announcing the cut in petrol and diesel prices and said the Centre should also withdraw the cess on petroleum products.

“The common people are facing the harassment and hardships. For the time being, we have decided to slash one rupee for each litre of petrol and diesel.

“We also demand that the central government consider cutting down the cess on diesel and petrol prices,” she told reporters at the state secretariat here.

According to a senior official in the state finance department, the reduced prices would be applicable from Tuesday midnight.

Tamil Nadu Chief Minister K Palaniswami said Tuesday the state may consider reducing its taxes on petrol and diesel, as his ruling AIADMK blamed the central government for the rising fuel prices and accused it of “acting” as if it was unaware of people’s problems.