Petrol, diesel prices hit fresh high, go up for 10th consecutive day

Sean Reid
September 4, 2018

With imports becoming costlier because of a free fall in the rupee against the United States dollar, the government believes the current account deficit will overshoot the target and it can not "disturb fiscal maths by cutting excise duty on petrol and diesel", according to the official quoted above.

Fuel prices in all metro cities are once again at an all-time high.

The retail price of LPG will also remain unchanged. In Mumbai petrol touched Rs 86.56 per litre while diesel increased to Rs 75.54 per litre, after a hike of Rs 0.44 per litre.

Fuel rates have been on fire since the middle of August, rising nearly every day due to a combination of a drop in the value of the rupee and rise in crude oil rates.

After the hike on Tuesday, the total increase in petrol prices is around Rs 2.50 per litre, while for diesel it has crossed Rs 3 per litre in the last one month. This had also led to several transport unions holding agitations in July and demanding the government to bring petrol and diesel under the ambit of GST. "If taxes are cut, prices will decline significantly", Chidambaram said on Twitter.

Further, higher import bill has widened the current account deficit - a key measure of a country's macroeconomic stability and an excess of sum of exports of goods and services, as well as income receivable over imports and income payable. "Secondly, global currencies have weakened against the USA dollar", he said.

In an election year, the spending cut is not an option, the official said reasoning that it would hamper government's spending on development schemes. There is a pressure on oil prices due to decrease in production.

This year, there's South Africa has been hit by record fuel prices.

The price build-up of petrol in Delhi includes excise duty of ₹19.48, dealer commission of ₹3.63, and Value-Added Tax of ₹16.83 (including Value-Added Tax on dealer commission).

On Monday, the key transportation fuel was sold at Rs 71.15, Rs 74, Rs 75.19 and Rs 75.54 per litre in Delhi, Kolkata, Chennai and Mumbai respectively, up from Rs the previous levels of Rs 70.76, Rs 73.61, Rs 74.77 and Rs 75.12 per litre.

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