Petrol and Diesel Prices Drop On Global Cues

Fuel prices in the country were revised lower on Thursday after a temporary slowdown in the last few days. Rates in the country were impacted by the fall in international crude prices after Iran signaled that the OPEC (Organization of Petroleum Exporting Countries) may decide to increase the production in their meet scheduled over the weekend.

International benchmark Brent on Thursday morning was trading lower by 0.3 percent to $74.55 a barrel from its previous close.

Petrol price across India was lowered by an average of 11 paise to Rs 76.16 in Delhi, Rs 78.83 in Kolkata, Rs 83.92 in Mumbai and Rs 79.04 in Chennai. Diesel price was down by an average of 10 paise to Rs 67.68 in Delhi, Rs 70.23 in Kolkata, Rs 71.99 in Mumbai and Rs 71.44 in Chennai.

GST on fuel prices

Meanwhile, a top government official told PTI that a new combination tax regime will be imposed on auto fuels replacing the existing tax structure that includes excise duty from the central government and VAT (value added tax) by the state government. The new regime that will include a peak GST (goods and service tax) rate of 28 percent and local tax (VAT or sales tax) on petrol and diesel will be equivalent to the present tax incidence and is not a relief to the consumers.

"There is no pure GST on petrol and diesel anywhere in the world and so in India too it will have to be a combination of GST and VAT," the unnamed official said.