In a turn of events, petrol is now being sold at Rs 8 cheaper than what it previously used to in Delhi. The slashed prices come amid rapidly increasing rates of fuels across the country as petrol and diesel crossed the Rs 100-mark in several states.
This was due to the reduction in value-added tax or VAT that was lowered to 19.40 percent, compared to the earlier 30 percent. As such, petrol will now be sold at Rs 8 less in the national capital. The new rates will be applicable from midnight.
While October witnessed a massive surge in fuel prices, they remained unchanged for 27 straight days in November. The government also made a slight difference to the rates after excise duty on petrol and diesel was reduced while consumers were paying all-time high fares to buy even a litre of the fuels.
The majority of the metropolitan cities are now shelling out more than Rs 100 each for petrol and diesel. People in Delhi are buying petrol for Rs 103.97 per litre while diesel is being sold for Rs 86.67 per litre. Meanwhile, in Mumbai, which is selling fuels for the highest price compared to other metro cities, petrol is available for Rs 109.98 per litre while diesel prices stand at Rs 94.14 per litre.
These prices differ from state to state due to the variation in VAT charged by different regions. These prices are reviewed and revised every day by state-operated oil refiners like Bharat Petroleum, Hindustan Petroleum and Indian Oil. Crude oil prices in the international markets and the rupee-dollar exchange rates play a major role in deciding the fuel rates in India.
There was over a 2 per cent sharp increase in global oil prices to sustain the steep losses attained in the earlier time period. In response to the emergence of the Omicron virus variant, major oil producers gear up to revise the prices again and tackle the upcoming threat to the fuel industry.
Brent crude futures increased by $1.90, or 2.7 per cent, to $71.13 for one barrel. This was after a 3.9 per cent decrease witnessed on Tuesday. Following a 5.4 per cent decrease on Tuesday, U.S. West Texas Intermediate (WTI) crude futures increased by $1.71, or 2.6 per cent, to $67.89 for one barrel.
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