Petrol price sees no change for 13th day in row; Oil Minister appeals GST council, here's why
The government has also asked OMCs to absorb Rs 1 per litre hike in their basket, thereby, providing them limited room for reduction in prices of fuel products.
Petrol price in India today: While international crude oil prices have peaked near $75 per barrel highest since November 2014, the state-owned Oil companies have kept petrol prices unchanged since April 24, and today was no different. It needs to be noted petrol prices have been at new heights in various state capitals of India. Many reports have indicated the upcoming Karnakata poll was main reason for petrol price to remain unchanged for 13th consecutive day now.
OMCs like Hindustan Petroleum Corp Limited (HPCL), Indian Oil Corp (IOCL) and Bharat Petroleum Corp Limited (BPCL) decide the final retail petrol price by taking into consideration the international crude basket, plus states’ Value Added Tax (VAT) and the government's excise duty.
Karnataka is going for polls on May 12, and ahead of that the OMCs are cautious in deciding the petrol prices. There is a limited room for reduction in the product's prices as global crude continue to be volatile this year.
Recently, the Economic Affairs Secretary Subhash Chandra Garg reportedly said the government is not considering cutting excise duty on petrol and diesel yet as the rates have not touched levels that could trigger such an action.
However, on Friday, it is being known that Oil Minister Dharmendra Pradhan has appealed to GST council in bringing fuel prices under one-tax system.
"The rise in petrol prices is not restricted to one state. The issue has been sent to GST Council which will take the decision eventually. I appeal to the council to bring this matter under it," Pradhan told members of the press at an event in Madhya Pradesh, reported by Zee News.
Despite buoyant global crude prices, Indian OMCs have gave away the daily revision in fuel prices which began from June 2017. India gave up on petrol, diesel subsidy and linked prices to the international markets in hope that consumers will benefit as crude oil prices are trading at a third of their lifetime highs.
According to Reuters report, Oil prices rose about 2 percent on Friday, with U.S. crude hitting its highest in more than three years, as global supplies remained tight and the market awaited news from Washington on possible new U.S. sanctions against Iran.
Petrol price in New Delhi today: The petrol price here stood at Rs 74.63 per litre unchanged from the previous day. The petrol price in New Delhi is at six-year high.
Petrol price in Kolkata today: While in Kolkata, petrol price stood at Rs 77.32 per litre. Over Rs 77 per litre mark was last witnessed in May 2012.
Petrol price in Mumbai today: Petrol has remained four-year high in this city since start of 2018, as the price stood at Rs 82.48 per litre same as on the previous day. The near Rs 82 per litre-mark here was last seen in March 2014.
Petrol price in Chennai today: The petrol price here was priced at Rs 77.43 paisa similar versus previous day prices. The price in Chennai has touched Rs 77 per litre mark which was last seen in May 2012.
Petrol price in state capitals today: Petrol prices in Bangalore stood at Rs 75.82 per litre, in Bhopal at Rs 80.18 per litre, Bhubaneswar at Rs 73.46 per litre, Chandigarh at Rs 71.77 per litre, Dehradun at Rs 76.33 per litre, Gandhinagar at Rs 73.94 per litre, Hyderabad at Rs 79.04 per litre, Jaipur at Rs 77.32 per litre, Lucknow at Rs 75.83 per litre, Patna at Rs 80.13 per litre, Raipur at Rs 75.06 per litre and Srinagar at Rs 79.00 per litre.
Moreover, U.S. light crude settled up $1.29 at $69.72 a barrel. It touched a session peak of $69.97 for the first time since November 2014. It was on track to gain just over 2.3 percent on the week. Brent crude oil settled up $1.25 at $74.87 a barrel. The global benchmark was set to end the week up 0.3 percent.