In many cities throughout the country, including Delhi, Mumbai, Kolkata, and Chennai, fuel prices remained stable on Tuesday despite fluctuations in the previous day.
Last week, the Delhi government cut the value-added tax (VAT) on gasoline from 30% to 19.40%, cutting the city’s gasoline price by about 8 rupees per litre.
Thus, the cost of fuel in Delhi has decreased to Rs 95.41 a litre due to the reduction in VAT.
Following the Centre’s decision to drop the excise tax on gasoline prices, the petrol price in Delhi was higher than in the national capital region’s (NCR) cities of Uttar Pradesh and Haryana, where the state governments announced a VAT reduction in response to the Centre’s move.
While everything is going on, the price for one litre of diesel in Delhi remains steady on Tuesday, at Rs 86.67 per litre. Petroleum products are now selling for Rs 109.98 per litre in Mumbai, while diesel sells for Rs 94.14 per litre in Mumbai.
Following a recent decision by the Delhi government to lower the Value-Added Tax (VAT) on petrol, gasoline in the city has dropped by around Rs 8 per litre. In a meeting presided over by Delhi Chief Minister Arvind Kejriwal, the Delhi cabinet resolved.
Since the Centre announced an excise tax cut on automobile fuel more than a month ago, the prices of automobile fuels have remained stable. Fuel prices were lowered by Rs 5, and diesel prices were slashed by Rs 10 by the national government to assist the ordinary man.
Before this, gasoline prices steadily increased and had reached levels above Rs 100 in several cities. Many states followed the Centre’s lead and cut their own Value Added Tax (VAT) on gasoline and diesel, significantly lowering the cost of these essential commodities.
A VAT reduction on gasoline and diesel was announced in Delhi on November 30th, making it the most current state. As a result of the Arvind Kejriwal government cut of the fuel tax from 30% to 19.4%, gasoline prices have fallen by Rs 8, and the Oil is now selling at Rs 95.41 per litre in Delhi.
A similar pattern was seen in Delhi, where the fuel price was held steady on Tuesday, six days after the VAT drop was implemented.
An official statement indicated that the VAT on fuel would be lowered from the current 30 per cent to 19.4 per cent as a result of a cabinet meeting presided over by Kejriwal. This saves about 8 rupees per litre.
Following the reduction in VAT, sources informed PTI that the price of gasoline would fall from the present level of Rs 103 per litre to Rs 95 per litre.
According to the latest figures, the price of one litre of petrol in Chennai has been decreased to Rs 101.40, while the cost of one litre of diesel has been reduced to 91.43 rupees.
The price of gasoline in Bhopal was 107.23 rupees. Per litre, while the diesel price in Madhya Pradesh city was Rs 90.87 per litre. One litre of petrol cost Rs 109.52 in Pune, while a litre of diesel cost Rs 92.31. Both prices were higher than the previous day.
The central government implemented the excise tax decrease was the largest ever executed by any administration. According to economists, following a steep drop in oil prices, the move only partially reverses the increase in duties in 2020, accompanied by a steep decline in gasoline and diesel prices.
The move also comes on the heels of higher crude prices, which have pushed retail prices to new record highs in recent weeks.
Compared to other NCR cities in Uttar Pradesh and Haryana, where the state governments announced a reduction in VAT due to the federal government lowering the excise tax on fuel prices, the price of gasoline in Delhi had previously been higher.
On Diwali night, the government announced a fuel excise tax cut, causing gasoline and diesel prices to plummet. The government cut gasoline prices by 5 rupees from the beginning of the year and diesel prices by 10 rupees.
Due to this decision, many states, primarily controlled by the National Democratic Alliance (NDA) and its allies, have reduced their Value Added Tax (VAT) on gasoline and diesel prices.
Opposition-ruled Petrol prices have been reduced significantly in Punjab and Rajasthan, following the lead set by the central government. According to pricing lists published by state-owned fuel merchants, the combined effect of the excise tax and VAT reduction resulted in a further decrease in the price of petrol and diesel in Punjab of up to Rs 16.02 per litre Rs 19.61 per litre, respectively.
A deduction of Rs 11.02 in the VAT on petrol and Rs 6.77 in the VAT on diesel have been announced in the state. Diesel costs in Ladakh have been reduced by the maximum, by Rs 9.52 per litre, making it the most affordable fuel. This is possible because of a reduction in VAT on top of a reduction in excise tax of Rs 10 per litre.
Following the Centre’s decision to drop the excise tax on gasoline prices, the petrol price in Delhi was higher than in the national capital region’s (NCR) cities of Uttar Pradesh and Haryana, where the state governments announced a VAT reduction in response to the Centre’s move.
According to the most recent figures, fuel costs Rs 95.41 per litre in Delhi, while diesel costs Rs 86.67 per litre.
In Mumbai, 1 litre of gasoline costs 109.98 rupees and 1 litre of diesel fuel costs 94.14 rupees.
Fuel costs Rs 101.40 a litre in Chennai, according to the Indian Petroleum Corporation. Petrol was priced at Rs. 91.43 a litre on Tuesday, according to the Indian Petroleum Corporation.
Every day, oil firms adjust the price of gasoline and diesel following the average cost of benchmark fuel in the worldwide market over 15 days and the value of the US dollar relative to the foreign currency.
While everything is going on, the price for one litre of diesel in Delhi remains steady on Tuesday, at Rs 86.67 per litre. Petroleum products are now selling for Rs 109.98 per litre in Mumbai, while diesel sells for Rs 94.14 per litre in Mumbai.
Every day, oil firms adjust the price of gasoline and diesel following the average cost of benchmark fuel in the worldwide market over 15 days and the value of the US dollar relative to the foreign currency.
Oil marketing firms, such as the state-owned Indian Oil, examine and revise the rates of gasoline and diesel daily, with any changes taking effect at 6 a.m.
Depending on the incidence of local taxes such as VAT and freight costs, Fuel prices vary by region of the United States.
Concerns about the effect of the Omicron version on global fuel consumption receded on Tuesday, after a nearly 5 per cent increase on Monday. Meanwhile, the Iran nuclear negotiations have met snags, further delaying the resumption of Iranian crude supply, according to the news agency Reuters.
Oil marketing firms, such as the state-owned Indian Oil, examine and revise the rates of gasoline and diesel daily, with any changes taking effect at 6 a.m. Depending on the incidence of local taxes such as VAT and freight costs, Fuel prices vary by region in the United States.
Concerns about the effect of the Omicron version on global fuel consumption receded on Tuesday, after a nearly 5 per cent increase on Monday. Meanwhile, according to the news agency Reuters, the Iran nuclear negotiations have met snags, further delaying the resumption of Iranian crude supply.
edited and proofread by nikita sharma
