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24 January 2018
 |
| Petrol, diesel(The Total Investment & Insurance Solutions) |
Petrol
prices on Wednesday hit the highest level since the BJP government came to
power in 2014.
Petrol
price rose to Rs 72.43 per litre in Delhi, highest since March 2014, while
diesel price rose to Rs 63.38 per litre in Delhi.
In Mumbai,
prices have crossed Rs 80-mark - costliest in the country.
Diesel
is being sold at Rs 67.50 in Mumbai, where the local sales tax or VAT rates are
higher.
The
spurt in rates, caused by the rally in international oil prices, has led to
the oil ministryasking the finance ministry for a cut in excise duty in
the Union Budget 2018-19, to be presented in Parliament next week.
The
reduction sought is part of the pre-Budget memorandum submitted by the ministry
for the consideration of Finance Minister Arun Jaitley, officials said.
The
central government levies Rs 19.48 per litre excise duty on petrol and Rs 15.33
on diesel.
VAT
on petrol in Delhi is Rs 15.39 per litre while on diesel it is Rs 9.32.
The
rally in oil prices has renewed calls to the government to cut excise
duty to cushion the burden on common man.
The
BJP-led NDA government had raised excise duty nine times between November 2014
and January 2016 to shore up finances as global oil prices fell, but cut the
tax only once in October last year by Rs 2 per litre.
The
excise duty in October 2017 was cut when petrol price had reached Rs 70.88 per
litre in Delhi and diesel was priced at Rs 59.14.
Because
of the excise duty cut, diesel prices had on October 4, 2017 come down to Rs
56.89 and petrol to Rs 68.38. However, subsequent rally has wiped away all the
gains and prices have touched new highs.
The
October 2017 excise duty cut cost the government Rs 26,000 crore in annual
revenue and about Rs 13,000 crore during the remaining part of the current
fiscal year that ends on March 31, 2018.
The
government had between November 2014 and January 2016 raised excise duty on
petrol and diesel on nine occasions to take away gains arising from plummeting
global oil prices.
In
all, duty on petrol was hiked by Rs 11.77 per litre and that on diesel by 13.47
a litre in those 15 months which helped the government's excise mop-up to more
than double to Rs 2,42,000 crore in 2016-17 from Rs 99,000 crore in 2014-15.
State-owned
oil companies in June last year dumped the 15-year old practice of revising
rates on 1st and 16th of every month and instead adopted a dynamic daily price
revision to instantly reflect changes in cost. Rates during the first fortnight
starting June 16 dropped but have been on the rise since July 4.
Since
then prices are revised on daily basis. Today, price of petrol went up by 15
paisa per liter and that of diesel by 19 paisaThe Total Investment & Insurance Solutions
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