Petrol and Diesel Prices went down by 1 paisa after 16 days

Marcus Newton
May 31, 2018

IOCL had on Wednesday posted a reduction of 60 paise in petrol prices but later clarified that the prices had come down by only 1 paisa and that the previous figure was posted due to a "technical glitch".

On Wednesday, oil prices dropped to about $75 a barrel after Saudi Arabia and Russian Federation announced their decision to relax restrictions on supply that had led to an increase in crude prices, Reuters reported. But our government has taken the decision to cut sales tax on fuel to effect a Re 1 reduction in petrol and diesel prices from June 1.

In the 16 consecutive increases since May 14, petrol price was hiked by ₹3.8 per litre and diesel by ₹3.38.

The new petrol prices, at Indian Oil Corporation bunks in metro cities are: Rs 77.42 (Delhi), Rs 81.05 (Kolkata), Rs 86.23 (Mumbai) and Rs 81.42 (Chennai). "The selling prices of petrol and diesel w.e.f 30th May 2018 have been rectified on our website".

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The cost of diesel per litre has also been increased to Rs 69.31 per litre in Delhi and Rs 73.79 a litre in Mumbai. Prices soared to over ₹ 80/litre for petrol and ₹ 70/litre for diesel.

Once customers realised this, relief turned into frustration, with consumers taking to social media to target the government for its inability to keep prices down.

Starting from Opposition Congress to several parties and Chief Ministers of Punjab, Kerala have criticized the move to cut down 1 paisa. The government also received Rs20 tax on petrol while Rs30 on diesel. The Ogra said the adjustment in prices of petroleum products was required to pass on the impact of fluctuation in global oil prices and currency fluctuation. "Now will PM Modi be willing to roll back his tax hike?" tweeted TM Thomas Isaac, Kerala's finance minister. These taxes include central excise duty and VAT. This will cause a revenue loss of Rs 509 crore annually.

Other reports by MaliBehiribAe

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