Petrol and diesel prices continue to be constant for over a month in the whole of the country on December 7, 2021. Few days back after Delhi slashed VAT on petrol to 19.4% from the earlier 30%, petrol prices in Delhi have gone down by Rs. 8 per litre. Though there are no changes in the pricing of diesel.
Fuel prices were last revised in the country on November 4 after the government 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.
Thereafter the government also pushed states and Union territories to commensurately reduce VAT and following the directions as many as 27 states and UTs even have announced VAT cut, bringing down the cost of fuel that scaled to record high levels.
Here are the fuel rates as on December 7, 2021:
|Metro city||Petrol rate in Rs/litre||Diesel rate in Rs./litre|
Notably, there are still states that have not reduced VAT including Congress and its allied led Jharkhand, Maharashtra and TN. West Bengal, Kerala, AP and Telangana have also not slashed VAT.
Fuel rates in the country since 2017 are revised by oil marketing companies at 6:00 am on a daily basis and thus have been following dynamic pricing model. The international rates as well as foreign exchange rate influence fuel rates in the domestic market.
Crude prices internationally
Crude surged 5 percent in overnight trade and was seen trading with gains of close to 1 percent on the WTI benchmark with prices at $70.07 per bbl as concerns on the impact the new Covid variant over the demand for the commodity eased. Meanwhile, as Iran nuclear talks fails to go through, there shall be delay in the return of crude supplies from the country.