New Delhi: Petrol price was on Tuesday cut by 54 paisa a litre, but the first reduction in diesel rates in over five years was put off until the return of Prime Minister Narendra Modi from the US. Petrol price was reduced by 54 paisa a litre without including local sales tax or VAT, with effect from Wednesday.
After accounting for the incidence of local sales tax, petrol rate in Delhi was reduced by 65 paisa to Rs 67.86 per litre, according to Indian Oil Corp (IOC), the nation’s largest fuel retailer. In Mumbai, petrol price was cut by 68 paisa to Rs 75.73 per litre.
Softening international oil rates has meant that diesel under-recovery or the difference between retail price and its imported cost was wiped out and there was an over-recovery of 35 paise a litre from September 16. This over-recovery is now about Re 1 a litre.
Oil Minister Dharmendra Pradhan is believed to have already written to Modi on the emerging scenario. Also, the ministry has written to the Election Commission seeking their concurrence for the price decrease in view of state assembly elections in Maharashtra and Haryana.
In January 2013, the UPA decided to deregulate diesel prices in stages through monthly 50 paise a litre increases. Rates were last raised on August 31 after which losses have been wiped out. Rates have cumulatively risen by Rs 11.81 per litre in 19 instalments since January 2013.
Bureau Report
Leave a Reply