Fuel prices static for fourth consecutive day. More price cut in the offing?
2 min read . Updated: 08 Nov 2021, 11:23 AM ISTPetrol and diesel prices have witnessed a significant drop in the last few days owing to excise duty cuts across India and VAT rate cuts in some states.
Following the significant price cut owing to the excise duty reduction by the central government and VAT rate reduction by several state governments, petrol and diesel prices remain steady for the fourth consecutive day on Monday. This comes as a major relief for motorists and non-motorists as well.
(Also Read: Duty cuts bring down tax on petrol down to 50%, diesel to 40% in Delhi)
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Thanks to the excise duty cut, the total incidence on petrol and diesel came down to 50 per cent and 40 per cent respectively across India. The total incidence reduction was higher in those states, where the respective state governments reduced VAT following the centre's excise duty cut.
After these price cuts, petrol price has come down under ₹100 per litre mark in major parts of the country. However, the metro cities are still selling a litre of petrol at above the ₹100 mark. Delhi is retailing petrol at ₹103.97 per litre and diesel at 86.67 a litre.
Petrol price in Mumbai stands at ₹109.98 per litre, while diesel price in the financial capital is ₹94.14 for one litre. In Kolkata, the price of one-litre petrol is ₹104.67, while a litre of diesel sells at ₹89.79.
While the excise duty cut and subsequent VAT rate cuts by some state governments came as a breather for common people, there is hope that the prices of petrol and diesel will be further brought down. Experts too believe that there is further room to cut excise duty.
With seven months of this financial year already gone and the government has filled its coffer with a high rate of taxes already, a higher excise duty cut can be announced for the rest of the months of this fiscal. Interestingly, in 2021 alone, fuel prices have increased by more than ₹21 per litre owing to the high excise duty that was announced last year and also the surge in crude oil prices in the international market.