Contact Your Financial Adviser Money Making MC
21 May 2018
 |
Fuel
(The Total Investment & Insurance Solutions)
Petrol
and diesel prices continue their upwards journey amidst continuous calls for a
cut in excise duty to ease the burden on consumers. In July 2014, the price
of petrol was Rs 73.60 per litre while diesel was at Rs 57.84 per
litre. At that time the Indian Basket Crude Oil was USD 106.30 per barrel.
On
Monday (May 21, 2018), the petrol price touched a record high of Rs 76.57 per
litre and diesel climbed to its highest ever level of Rs 67.82 as the oil PSUs
passed on four weeks of relentless rise in international oil prices to
consumers. The Indian Basket Crude Oil is at USD 79.13 per barrel.
This
is the eight straight day of price increase since oil PSUs on May 14 resumed
daily price revision after a 19-day pre-Karnataka poll hiatus. In all, petrol
price has been raised by Rs 1.94 a litre and diesel by 1.89 in last one week.
The
central government levies Rs 19.48 a litre of excise duty on petrol and Rs
15.33 per litre on diesel. State sales tax or VAT vary from state to state. In
Delhi, VAT on petrol is Rs 15.84 and Rs 9.68 a litre on diesel.
Brent
crude futures were at USD 79.13 per barrel at (0121 GMT) on Monday (May 21), up
62 cents, or 0.8 percent, from their last close. Brent broke through USD 80 for
the first time since November 2014 last week.
Fuel
prices in India are affected by any change in the international market. The
chart below mentions the price of Indian basket crude oil along with Retail
Selling Price (RSP) of Petrol and Diesel, in Delhi in July 2014.
|
Year/Month
|
Indian Basket Crude Oil (USD /bbl.)
|
Petrol (Rs/Litre)
|
Diesel (Rs/Litre)
|
|
July, 2014
|
106.30
|
73.60
|
57.84
|
While
the government is hoping that geopolitical tension would ease and US shale oil
would help ease oil prices, it is not in favour of tinkering with the autonomy
given to oil PSUs to revise rates daily in line with the cost.
State-owned
oil companies in June 2017, 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 costThe Total Investment & Insurance Solutions
No comments:
Post a Comment