Fuel prices in metro cities remain unchanged

By Team Newsable | First Published Mar 6, 2022, 12:43 PM IST

On Sunday, petrol and diesel prices in significant cities remained steady.

The fuel price across the country remains unchanged on Sunday in the metro cities. The cost has remained static for over 120 dates, and this marks the most prolonged durations; the rate has remained firm ever since the daily revision of prices began in June 2017.

The central government reduced excise duty on November 4, 2021, to provide relief from historically high prices. The government reduced the duty on petrol by Rs 5 per litre and on diesel by Rs 10 per litre, resulting in significant reductions in fuel prices.

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In December 2021, the Delhi government cut the value-added tax on gasoline from 30 per cent to 19.40 per cent. As a result, petrol prices in the national capital have dropped by Rs 8.56 per litre.

In Delhi, petrol costs Rs 95.41 per litre, while diesel is sold at Rs 86.67. In Mumbai, petrol costs Rs 109.98 per litre, while diesel costs Rs 94.14 per litre. Among metro cities, Mumbai continues to have the highest fuel prices. Fuel prices differ by state due to value-added tax or VAT. In Chennai, petrol is sold at Rs 101.40 and diesel at Rs 91.43. Kolkata, Rs 104.67 for petrol and Rs 89.79 for diesel.

State-run oil refineries such as Indian Oil, Bharat Petroleum, and Hindustan Petroleum alter fuel prices daily, considering international crude oil prices and rupee-dollar exchange rates. Any gasoline and diesel price changes take effect at 6 am every day.

India relies on imports for 85 per cent of its oil needs, and domestic gasoline and diesel prices are tied to international rates. Despite a spike in global oil prices, the rates for gasoline and diesel have remained unchanged for more than three months. The rates have also been maintained even though assembly elections in the politically significant state of Uttar Pradesh are still ongoing. In contrast, polls in Punjab, Uttarakhand, Goa, and Manipur have just finished.

Several analysts and industry experts have suggested that fuel prices may be raised after the Uttar Pradesh elections on March 7. The results were announced on March 10, as oil prices have risen above $116 globally due to Russia's ongoing invasion of Ukraine.

Also Read: Russia-Ukraine war: How hike in crude oil price will impact India, and common man

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