Petrol, Diesel Prices Raised Again After a Day's Break

By Olga Robert
Subscribe to GoodReturns
For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts

    Fuel prices in India were increased on Thursday after holding on for a day. As per state-owned oil marketer Indian Oil's website, petrol per litre was hiked close to 20 paise across metro cities to Rs 79.51 in Delhi, Rs 82.41 in Kolkata, Rs 86.91 in Mumbai and Rs 82.62 in Chennai. Similarly, diesel prices per litre have been raised to Rs 71.55 in Delhi, Rs 74.40 in Kolkata, Rs 75.96 in Mumbai and Rs 75.61 in Chennai.

    Petrol, Diesel Prices Raised Again After a Day's Break

    The rates mark fresh all-time highs in all these cities. These rates are decided based on crude oil rates prevailing in the global markets and taxes imposed by the state and central government. According to Reuters data, global crude benchmark Brent declined on Wednesday after hitting $79.72 a barrel on Tuesday- its highest since May.

    On Thursday, the fall continued as weakness in emerging markets have been weighing on investor sentiments. Currencies of many emerging economies including Turkey, India, South Africa, and Indonesia have fallen this week. The rupee marked its new all-time high of 71.96 against the dollar.

    This has raised concerns of slowing down demand for oil in these countries, especially China (which has already reduced its oil imports). The prospects fall in demand and increased supply from OPEC (Organisation of Petroleum Exporting Countries) have been the causes of the recent downfall. Brent crude price today, however, still lingers closer to $80 at $77.22 a barrel.

    In India, on the other hand, the falling rupee has weighed on the import costs of the oil importing companies and they pass on the burden to consumers. The state, as well as the centre, refuse to reduce the taxes they impose on the two petroleum products as it forms a major source of revenue for the governments.

    Additionally, at a time where the rupee is its weakest, the government cannot afford to lose any income from oil to maintain economic stability. Many of the infrastructural projects taken up by the Union government are being funded by these taxes. In states like Karnataka, the burden of farm loan waivers was passed on to petroleum VAT imposed on consumers in the state.

    Read more about: petrol diesel
    Story first published: Thursday, September 6, 2018, 11:03 [IST]
    Company Search
    Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'

    Find IFSC

    Get Latest News alerts from Goodreturns

    We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more