On 3 March, fuel prices in India were left unchanged for the fourth consecutive day by state-owned oil marketers.
Petrol prices per litre stayed at Rs 91.17 in New Delhi, Rs 91.35 in Kolkata, Rs 97.57 in Mumbai and Rs 93.11 in Chennai.
Diesel prices per litre were stagnant at Rs 81.47 in New Delhi, Rs 84.35 in Kolkata, Rs 88.60 in Mumbai and Rs 86.45 in Chennai.
Rates are currently at all-time highs. These rates are revised on a daily basis based on These rates are revised on a daily basis by oil marketing companies in line with changes in the international prices and the rupee's exchange rate. Oil prices have been on a rise since January on optimism in the global economy after progress in the US stimulus package and on hopes for improving fuel demand as vaccines are rolled out.
The surge in oil prices and high central, as well as state taxes, have pushed the price of petrol in certain regions past Rs 100 per litre. In Madhya Pradesh petrol is priced at Rs 100.14 per litre.
The Finance Ministry is considering cutting excise duties on petrol and diesel to cushion the impact of record-high domestic prices, said three government officials close to the discussions told Reuters.
After the COVID-19 outbreak, international oil prices had fallen to a two-decade low as all major economies announced lockdown measures. Both central and the state government took the opportunity to increase taxes on the retail price of fuel in order to make up for tax revenue losses in the nationwide lockdown.
The central government raised excise duty on petrol by Rs 13 per litre and that on diesel by Rs 16 a litre in two tranches in 2020 (in March and May). With this, the total incidence of excise duty on petrol rose to Rs 32.98 per litre and that on diesel to Rs 31.83 a litre.