Despite the government cutting down petrol and diesel prices by Rs 2.5, and 10 states also slashing prices by Rs 2.5 further, fuel has reached a three-week high again. Four days after the fuel price cut announcement, petrol has seen total 53 paise rise, while diesel has been up by 87 paise. Continuing its freefall, the rupee has reached Rs 74.04 on Monday, before touching Rs 74.24 on Sunday. The crude oil prices are at a four-year high, which is why the two fuels have started turning costlier again. Petrol prices had earlier hit an all-time high of Rs 84 per litre in Delhi and Rs 91.34 in Mumbai, forcing the government to take measures.
Meanwhile, here are the fuel prices, as per the Indian Oil pricing, in four major cities of India on Monday.
1. Delhi: Petrol Rs 82.03 per litre, up 21 paise; diesel Rs 73.82 per litre, up 25 paise
2. Mumbai: Petrol Rs 87.50 per litre, up 21 paise; diesel Rs 77.37 per litre, up 31 paise
3. Chennai: Petrol Rs 85.31 per litre, up 27 paise; diesel Rs 78.09 per litre, up 36 paise
4. Kolkata: Petrol Rs 83.87 per litre, up 21 paise; diesel Rs 75.67 per litre,29 paise
The BJP-ruled states had cut the VAT levied on the two fuels by Rs 2.50 paise a litre, as requested by the Centre, to ease the cost burden on consumers by Rs 5 a litre. The non-BJP ruled states did not reduce VAT and have instead been demanding a bigger excise duty cut from the Centre on the two fuels even as the issue has assumed importance in the run-up to the polls. Delhi still has the lowest prices for petrol and diesel among metros despite the Kejriwal government not cutting VAT. Mumbai, on the other hand, continues to be the costliest. Experts say state-owned fuel retailers absorbing Re 1 per litre price would mean around Rs 9,000 crore hit on profits on an annualised basis. The government's revenue would also be impacted by Rs 10,000 crore.
Meanwhile, Brent crude oil prices fell by more than 1 per cent on Monday after the US said it may grant waivers to sanctions against Iran's oil exports next month, and as Saudi Arabia was said to be replacing any potential shortfall from Iran, reported Reuters. International benchmark Brent crude oil futures LCOc1 were at $83.25 per barrel at 0115 GMT, down 91 cents, or 1.1 per cent, from their last close. US West Texas Intermediate (WTI) crude futures CLc1 were down 57 cents, or 0.8 per cent, at $73.77 a barrel.
Edited by Manoj Sharma