Brace for another fuel price hike



While the diesel prices were marked at Rs 75.69 per litre in Delhi and Rs 79.35 per litre in Mumbai.

"However‚ the potential price hikes are still daunting‚ especially for diesel users". After the government cut petrol and diesel prices by Rs 2.50 per litre on October 4, when Petrol had crossed Rs 91/litre (Rs 91.34/litre) in Mumbai and Rs 84, Rs 85.80 and Rs 87.33 in Delhi, Kolkata and Chennai respectively, prices had fallen (Petrol nearing Rs 87 per litre in Mumbai), but the relief was short-lived.

He said that worldwide crude oil prices have been gone down by $5 per barrel in the last nine days, yet there is no respite in rising prices of petrol and diesel. In the meet, PM discussed the measures to control the continuously rising fuel prices and the United States sanctions on Iran due to come into effect from November 4. Diesel is now being sold at Rs 75.69 a litre, beating its earlier high of Rs 75.45. Diesel cost Rs 79.11 per litre, an increase of nine paise from Sunday. This was matched by several states which reduced local sales tax or VAT.

After the Centre cut excise duty by Rs 1.50 per litre and asked PSU oil firms to subsidise fuel by Re 1, Maharashtra and Gujarat governments were among the first to announce a matching Rs 2.50 cut. Chhattisgarh, Jharkhand, Tripura, Uttar Pradesh, Madhya Pradesh, Himachal Pradesh, Haryana Assam, Uttarakhand, Goa, Arunachal Pradesh and Bihar followed suit. In a bid to ease the crunch caused by soaring fuel prices, Finance Minister Arun Jaitley had announced a reduction of Rs 2.50 per litre on both petrol and diesel prices after curbing excise duty on the commodity by Rs 1.50 per litre.

Even before the excise duty cut, Rajasthan, West Bengal, Karnataka, Kerala and Andhra Pradesh had last month reduced Value-Added Tax to cushion consumers for a spate of price increases.