The price of auto fuels both petrol and diesel have not been changed on July 13, 2021 (Tuesday). So far in the month of July, petrol prices have been raised seven times and on a year to date basis has increased by almost 15%.
Here are the rates of petrol and diesel in most metros:
|Metros||Petrol rates (in Rs/Litre)||Diesel rates (in Rs/Litre)|
|Delhi||Rs. 101.19||Rs. 89.72|
|Mumbai||Rs. 107.2||Rs. 97.29|
|Chennai||Rs. 101.92||Rs. 94.24|
|Kolkata||Rs. 101.35||Rs. 92.81|
After the assembly elections in some of the key states have completed, petrol and diesel prices are on a continuous rise. Since 2017, oil retailers have been following dynamic pricing model wherein fuel rates are revised everyday at 6 am based on the crude rates in the previous fortnight.
Even as the fuel prices have crossed Rs. 100 in most cities, the centre has decided not to reduce taxes and this is even as the fiscal deficit keeps soaring to support an economic rebound.
Taxes on petrol and diesel
On fuel there is a levy of VAT that varies from state to state and is charged as a percentage of the fuel price. While there is also charged excise duty i.e. a fixed amount levied in rupee terms per litre. This excise duty increases for the government when the consumption soars and not when the price of auto fuel rises.