Petrol, diesel prices remain unchanged for seventh day in a row, but don’t expect any cut soon; here’s why

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Published: May 1, 2018 11:30:47 AM

For the seventh day in a row, petrol and diesel prices have not been changed by the state-run oil marketing companies.

Oil at 0 a barrel? Not impossible, says this hedge fund manager; here's whyThe petrol and diesel prices are currently hovering at a 55-month high of Rs 74.63 a litre and Rs 65.93 a litre, respectively. (Image: Reuters)

For the seventh day in a row, petrol and diesel prices have not been changed by the state-run oil marketing companies. However, the government is not mulling over a plan to cut excise duty as fuel rates haven’t reached levels that could trigger such an action, PTI reported citing Economic Affairs Secretary Subhash Chandra Garg. The petrol and diesel prices are currently hovering at a 55-month high of Rs 74.63 a litre and Rs 65.93 a litre, respectively. The petrol prices at present are at Rs 74.63 per litre in Delhi, Rs 77.32 per litre in Kolkata, Rs 82.48 per litre in Mumbai and Rs 77.43 per litre in Chennai, according to Indian Oil Corporation (IOCL).

The prices of diesel are at Rs 65.93 per litre, Rs 68.63 per litre, Rs 70.2 per litre and Rs 69.56 per litre, IOCL website showed. The petrol prices rose by Rs 1.06-1.14 per litre in the month of April in Delhi, Mumbai, Chennai and Kolkata. However, the prices of diesel plunged Rs 1.53-1.63 per litre in the same month.

“If the level (of prices now) does not go up, there is no reason (for excise duty cut). Every rupee cut in excise duty on petrol and diesel will result in a revenue loss of Rs 13,000 crore,” Economic Affairs Secretary Subhash Chandra Garg told PTI without throwing light on the ‘trigger-levels’.

Demands for excise duty cut

The recent surge in the prices of petrol and diesel have raised demands for cut in the excise duty. However, so far, the Finance Ministry has ignored such calls. India has the highest fuel retail prices among the South Asian nations. Between November 2014 and January 2016, excise duty on fuel petrol and diesel was hiked nine times by the government. In October last year, the tax on petrol,diesel was cut by Rs 2 per litre.

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