New Delhi, May 20: The government has limited the increase in petrol and diesel prices to 4.4% by cutting excise duties and directing oil companies to compensate for losses incurred due to the cost of imported crude oil exceeding $100 per barrel.
According to government sources, state-owned oil companies have maintained stable prices by recovering ₹24,500 crores in losses, resulting in a price hike of ₹3.91 per liter for both fuels in two installments.
A senior official stated that the government faced a revenue loss of ₹30,000 crores due to the reduction in excise duties on petrol and diesel. Meanwhile, oil companies incurred losses of ₹24,500 crores on these fuels and an additional ₹40,000 crores for keeping LPG prices stable for domestic consumers.
Indian oil marketing companies have raised petrol and diesel prices by ₹3 and ₹0.91, respectively, totaling ₹3.91 per liter. The central excise duty on petrol and diesel is uniform across all states.
However, the difference in pump prices is due to the value-added tax (VAT) imposed by each state government. States with the highest petrol pump prices include Telangana, Kerala, Karnataka, and Tamil Nadu, while Gujarat, Uttar Pradesh, Delhi, Haryana, Goa, and Assam have the lowest prices.
An official from Indian Oil noted that this ₹3.91 increase was implemented after public sector oil companies absorbed the full cost for 76 days. In contrast, other countries have adjusted retail prices of both fuels by 10% to 90% to accommodate rising crude oil costs.
In Myanmar, Malaysia, Pakistan, and the United Arab Emirates, petrol prices have surged to more than double pre-war levels, while diesel prices have risen even faster due to their close ties with global trade and freight costs.
Leave a Comment