Saturday, 20 October, 2018

Petrol breaches Rs 80 per litre mark in Delhi

CM Chandrababu Naidu announces cut on VAT to reduce petrol, diesel prices in Andhra Andhra Pradesh Government Announces Reduction in Petrol, Diesel Prices by Rs 2
Orlando Vargas | 10 September, 2018, 18:43

Since mid-August, petrol price has risen by Rs 3.24 a litre and diesel by Rs 3.74 per litre as rupee hit record low against the United States dollar, making imports costlier.

Reduction in petrol and diesel prices in Andhra Pradesh has come on a day the Congress party anchored a protest against the rising fuel prices across the country and the falling value of the rupee against the dollar.

Petrol prices went up by 39 paise per litre and Diesel prices saw an upward trend of 44 paise per litre in Delhi.

The prices of both petrol and diesel, have been at their record high levels for around a week now.

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Pradhan had in May this year - when petrol, diesel prices had reached their earlier peaks - said that the government is working on a long-term solution to reign in fuel prices when they reach uncomfortable levels.

On the other hand, the diesel costs Rs 75.36, Rs 76.98 and Rs 76.64 in the cities of Kolkata, Mumbai and Chennai respectively. Two, it insulates fuel prices from competitive politics. Notably, the rapid fuel price hike in the country is caused due to a combination of rising in crude oil rates and fall of the Indian rupee against the U.S. dollar. However, prices vary in different parts of the state due to local tax additions.

In Andhra Pradesh, the Value added tax or VAT has been among the highest anywhere - 35.77 per cent for petrol, next only to Maharashtra and Madhya Pradesh, and 28.08 per cent for diesel, the highest in the country. A reduction in retail prices can happen only if excise duty is reduced - in which case the Centre and state governments bear the loss, or the oil firms bear it directly. Bharat Bandh was called for today from 9 AM to 3 PM to bring petrol and diesel under the Goods and Services Tax (GST), which, the grand-old party said, would decrease the price by Rs 15-18.

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