Fuel prices were unchanged from record high levels on Wednesday in the major metros, despite a Bharat Bandh held on Monday protesting against rising fuel prices. In Mumbai, petrol is now selling for Rs 88.26 per litre, a hike of 14 paise from previous record high levels. In national capital Delhi, petrol prices are nearing the Rs 81-mark, now retailing at Rs 80.87 mark. In Chennai, petrol prices were seen at Rs 84.05 while in Kolkata, one litre of petrol is selling for Rs 82.74, data from IOC app showed.
While petrol, diesel prices have been on the boil for some time now, the Narendra Modi-led government has ruled out any immediate reduction in excise duty in order to bring down the retail prices of auto fuels, and instead urged the states to take action. Yesterday, West Bengal CM Mamata Banerjee announced a and diesel price cut of Re 1. Providing relief to the common man, Rajasthan and Andhra Pradesh governments’ have announced a slash in VAT. Notably, Andhra Pradesh chief minister N Chandrababu Naidu has announced a reduction in value-added tax (VAT), which is expected to cost the state’s exchequer Rs 1,120 crore.
On Sunday, Rajasthan chief minister Vasundhara Raje had announced a 4% point reduction in value added tax (VAT) on petrol and diesel, having the impact of reducing the petrol price in the state by Rs 2.5 per litre. The decision is expected cost the state Rs 2,000 crore.
Oil prices rose on Wednesday following a report that crude inventories in the United States fell and as looming sanctions against Iran raised expectations of tightening supplies, with top producer Russia warning of a “fragile” global crude market. U.S. West Texas Intermediate (WTI) crude futures were at $69.81 per barrel at 0047 GMT, up 56 cents, or 0.8 percent, from their last settlement. WTI futures gained 2.5 percent in the previous session, Reuters reported.