Petrol and diesel prices rise again, hit 3-week high

However, diesel prices were cut by 70 paise in Mumbai and were sold at Rs. 76.75 per litre, a day after Maharashtra announced reduction in diesel prices by around Rs 4/litre.

Petrol is now retailed at Rs 81.82 per litre in Delhi, Rs 87.29 per litre in Mumbai, Rs 83.66 in Kolkata and Rs 85.04 in Chennai. "Kindly bring petrol and diesel under the purview of GST", he tweeted in Hindi. In the same period in 2016, the prices of the petrol and Diesel stood at around Rs 62 and Rs 50 and Rs. 66 and Rs 56 in Mumbai.

"For the reduction of Rs.1.56/litre in diesel prices, now don't squander Rs 1,500 crores in publicity, or people will be forced to shell out extra Rs. 10 to recover that", Munde added sarcastically.

On October 4, bowing to the demands of the general public which was largely condemning sustained fuel price hike, Centre announced a relief of Rs. 2.5 in total for consumers, of which Rs.1 has to be borne by the oil marketing companies (OMCs). After much chaos regarding the fuel rate, the government has made a decision to cut down the price of the fuel.

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SBI Research suggests that "States can reduce petrol prices by Rs 4.60 a litre and diesel by Rs 3.30 on an average without affecting their revenue arithmetic as the Centre announced a Rs. 1.5 a litre cut on excise duty and asked the oil companies to offer a Re 1 cut on both the fuels".

Even though the central government and some BJP-ruled state governments reduced the prices by Rs 5 collectively, the results are not positive for the four metro cities, out of which, three are ruled by non-BJP governments. In Lucknow, every litre of petrol costs Rs 79.12, whereas the same amount of diesel is selling for Rs 71.28.

The hike in duties in 2014-16 had led to excise collections from petro goods rising from Rs 99,184 crore in 2014-15 to Rs 2,29,019 crore in 2017-18.

The BJP-government at the Centre had raised excise duty on petrol by Rs 11.77 a litre and that on diesel by Rs 13.47 a litre in nine installments between November 2014 and January 2016 to shore up finances as global oil prices fell, but then cut the tax just once in October previous year by Rs 2 a litre.

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