Published: Sun, September 16, 2018
Finance | By Loren Pratt

Oil marketing companies again hike petrol, diesel prices

Oil marketing companies again hike petrol, diesel prices

The price of Brent crude oil is now over $78 per barrel.

The prices of domestic fuels continued to rise on Saturday with petrol being sold at Rs 81.63 per litre and diesel at Rs 73.54 per litre in the national capital. Likewise, it increased by Rs 0.19/litre in Mumbai to touch Rs 78.26/litre.

Cost of the key fuel in the eastern city of Kolkata rose to Rs 83.49, from the Friday's level of Rs 83.14 per litre.

They have been constantly calling for a cut in excise duty to cushion the spike in fuel prices. In Delhi, Mumbai, Chennai and Kolkata, diesel prices are at record levels of Rs. 73.72, Rs. 78.26 and Rs. 77.94, Rs. 75.57 per litre respectively.

Delhi charges a Value-Added Tax of 27% on petrol and 17.24% on diesel while Mumbai has a maximum Value-Added Tax of % on petrol.

India imports about 80 per cent of its crude oil, and the falling Indian rupee will make the imports costlier and lead to a rise in fuel prices.

India imported crude oil worth ₹ 2,640,30 crore (over $39 billion) between April and July 2018, according to the data by the Petroleum Planning and Analysis Cell. The petrol price was hiked by 27 paise, while diesel 18 paise, for a litre each.

Delhi has the cheapest fuel rates among all metros and most state capitals because of lower taxes.

Similarly, the price build-up of diesel in Delhi includes excise duty of ₹ 15.33, dealer commission of ₹ 2.52, and Value-Added Tax of ₹ 10.70 (including Value-Added Tax on dealer commission). The Centre now levies a total of Rs 19.48 per litre of excise duty on petrol and Rs 15.33 per litre on diesel. Mumbai has the highest rate of VAT or sales tax in the country.

Globally, oil prices pulled back on Friday on concerns additional U.S. tariffs would be placed on Chinese imports, after an earlier rally triggered by worries that more sanctions on Iran might constrict supply.

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