The price of price of kerosene oil has been recommended to be increased by Rs8.23 per litre and price of high speed diesel by Rs12.50 per litre. For the records' sake, the prices are now lower by 1 paise per litre for both petrol and diesel. A ONE paisa cut is not a suitable response to the #FuelChallenge I threw you last week, he tweeted. While Kerala CM has announced a cut of Rs 1 per litre on the tax on fuel, Punjab CM Amarinder Singh described "1 paisa" reduction of fuel price as a cruel joke.
The Congress party on Tuesday slammed the Narendra Modi government for failing to reduce prices of petroleum products and said it was engaged only in managing elections and headlines. Meanwhile, the cost of diesel per litre as on Wednesday is Rs 68.75 per litre in Delhi, Rs 73.20 per litre in Mumbai, Rs. 71.30 in Kolkata and Rs. 72.58 in Chennai.
The marginal decline in fuel prices had its share of excitement with state-owned Indian Oil Corporation (IOC) first announcing a reduction of 60 paise - the biggest since daily price revision was introduced in mid-June previous year, only to retract it within a couple of hours citing a technical error. Within hours of the announcement, they revised the cut to just 1 paisa a litre each.
Based on existing tax rates and import prices reported by Pakistan State Oil (PSO), Ogra has worked out an increase of Rs12.50 per litre in the price of HSD and Rs8.35 per litre in motor gasoline (petrol) for June.
As such, if the regulators' calculations are approved by the prime minister, the price of HSD would go up by 12.7pc, petrol by 9.5pc, kerosene by 10.3pc and LDO by 16.9pc.
Global crude prices have, however, fallen by about $5 per barrel to around $75 a barrel in the last fortnight.
Seeking a roll back of the fuel rates, Yechury said, "In states like West Bengal too, CM's approach to people's misery is exactly what Modi at the Centre's is: Callous disregard for their agony". The government also received Rs20 tax on petrol while Rs30 on diesel. In India, petrol and diesel are heavily taxed, with central and state taxes comprising about half the retail price. A one rupee cut in central excise duty on fuel could reduce central revenues by Rs 13,000 crore.