Fuel Rates Constant Today For Almost A Month On Dec 1; Crude Recovers Partially

Petrol and diesel prices continue to be constant for the 29th straight day today (December 1, 2021). The last time fuel prices were revised was on November 4 after the centre slashed excise duty on fuel. Consequently, petrol rate in the country was reduced by between Rs. 7-8 per litre, while for diesel rates came down by Rs. 11-13 per litre. Notably, the excise duty on petrol was slashed by Rs. 5 per litre, while that on diesel the cut was by Rs. 10 per litre. This has been the biggest ever cut in excise duty.

On the centre's push as many as 27 states and UTs even have announced VAT cut, bringing down the cost of fuel that scaled to record high levels hurting consumers.

Opposition party led Punjab as well as Rajasthan brought about the biggest cut in petrol rates.

Likewise, in Punjab petrol rates due to the combined impact of excise duty and VAT cut has been slashed by Rs. 16.02 per litre, while diesel saw a cut by Rs. 19.61 per litre.

However there still are states that have not reduced VAT including Congress and its allied led Jharkhand, Maharashtra and TN. Delhi, West Bengal, Kerala, AP and Telangana have also not slashed VAT.

Since mid June 2017, fuel rates in the country are revised on a daily basis at 6 am and thus have been following dynamic pricing model. The international rates as well as foreign exchange rate influence fuel rates in the domestic market.

International oil rates

In the previous day's trade, oil prices cracked again after Moderna's head had been skeptical about the efficacy of Covid vaccine in treating the new Omicron variant. So there resurfaced concerns over demand outlook for the commodity. Nevertheless, in trade today there were seens gains on the crude with both WTI and Brent crude trading higher by over 2%at $67.54 and $70.73 per bbl, respectively.

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