Petrol stable at Rs 91.17 in New Delhi, diesel unchanged at Rs 81.47

Petrol price on Tuesday remained stable at Rs 91.17 per litre in the national capital-- the same as yesterday. The diesel price was also unchanged at Rs 81.47, according to a price notification from oil marketing companies.

In Mumbai, petrol price stood at Rs 97.57 per litre--the same since Feb 17. In Chennai, petrol retailed at Rs Rs 92.97. Diesel was selling at Rs 86.45 in the city.

Prices have stabilised amid an outcry over record high fuel prices, which have been witnessing an upswing since January, leading to demands for a cut in excise duty. Yesterday, a report said that the finance ministry is considering cutting excise duties on petrol and diesel to cushion the impact of record high domestic prices, quoting three government officials close to the discussions said.

A doubling in the price of crude oil over the past 10 months has contributed to record fuel prices at gas stations in India.

But taxes and duties account for roughly 60% of the retail price of petrol and diesel in the country, the world's third biggest consumer of crude oil.

As the coronavirus pandemic hit economic activity, Prime Minister Narendra Modi's government twice raised taxes on petrol and diesel in the last 12 months to boost sagging tax revenues instead of passing on the benefits of low oil prices last year to consumers.

The Finance Ministry has now started consultations with some states, oil companies and the oil ministry to find the most effective way to lower the tax burden on consumers without federal finances taking a big hit, the report said.

"We are discussing ways in which prices can be kept stable.

We will be able to take a view of the issue by mid-March," said one of the sources mentioned in the report

The sources, who asked not to be named as the deliberations are private, said the government wants oil prices to stabilise before cutting taxes, as it does not want to be forced to change the tax structure again, should crude prices rise further.

Last week, Sitharaman had said the Centre and state governments will have to together work out a mechanism to bring retail rates to reasonable levels.

"This is a very vexatious issue. An issue in which no answer except reducing the price (of fuel) will convince anyone. I know I am treading on an area and whatever I may say, to bring in the reality into picture, will only sound like I am obfuscating." "I am avoiding my answer. I am shifting the blame," she said addressing a gathering at an event organised by the Chennai Citizens' Forum.

Earlier, oil minister Dharmendra Pradhan said petroleum products in the country are getting costlier due to rising prices of crude by oil-producing nations.

"In order to earn more profit in the interest of their countries, crude-supplying countries are increasing the prices of crude," said Pradhan while speaking on the rise in the prices of petroleum products like petrol and diesel in India.

He said crude-supplying countries have been requested to desist from the hike in crude prices as it directly affects consumers. They have created an artificial increase in the interest of their own country, he added.

"Arbitrarily, you cannot hike the prices as it affects consuming countries," he said in reference to oil-producing countries.

The increase in fuel prices has been criticised by the opposition parties such as the Congress that said that the Narendra Modi government should have cut excise duty to ease consumer pain.