Petrol and diesel prices cross unprecedented peak-petrol Rs. 77 per litre, and diesel, Rs. 70
Posted on: 24/Apr/2018 11:32:44 AM - No. of views : (1867)
The price of petrol has just crossed Rs. 77 per litre. Diesel price is nearing Rs. 70 per litre.
This is an unprecedented highest price and there seems to be an increasing trend of petrol price.
Earlier, the Indian Oil Companies themselves fixed the prices of diesel and petrol based on the international crude oil market price and the value of Indian Rupee against the US Dollars.
However, since June last year, the new system of revising the prices of petrol and diesel every day as per the factors above was implemented.
With this, the trend of the petrol and diesel prices going up in terms of paise started. In the most recent trend, the prices of petrol and diesel are increasing so fast to touch an unprecedented peak price level.
The price of petrol per litre today in the Chennai Metro City is R. 77.43. This is the highest in the last 5 years. The price of petrol as on 14th September 2013 was Rs. 79.55 which is the highest recorded price.
Presently, the price of petrol is galloping fast towards this peak price. Since January, the price of petrol per litrs has gone up by Rs. 4.94.
The price of diesel has already crossed the highest level and for the 1st time ever, the diesel price per litre is nearing Rs. 70.
The price of diesel per litre today is Rs. 69.56. During 1st January, the price of diesel per litre was Rs. 62.90 and has increased.
In the capital New Delhi, petrol costs Rs. 74.54 per litre today and diesel, Rs. 65.79.
This is a peak price since the BJP has assumed power.
Subsequent to this high price trend, there has been a demand that the central government must reduce the Kalal Tax on petroleum products and bring petrol and diesel under the GST domain.
However, the government does not seem to have any plans to reduce the Kala Tax on petrol and diesel. The central ministry of finance has clearly indicated this.
It may be noted that every time the central government reduces the Kala Tax by Re. 1 per litre, it stands to incur an annual loss of 13000 Crores. At the same time, the consumers need to pay just this Re. 1 or Rs.2 while buying petrol or diesel which may not be that harsh to lead to inflation.
Instead of demanding reduction in Kala Tax, the central finance ministry has suggested that the state governments can explore the possibility of reducing the VAT (Value Added Tax) rates.
