Petrol and diesel prices held steady on July 26, the latest price notification issued by fuel retailers showed. Fuel prices have stayed unchanged for more than a month.
The government scrapped a three-week-old tax on the export of petrol and cut windfall taxes on overseas shipments of diesel and ATF as well as on domestically produced crude oil after global oil prices fell.
Maharashtra chief minister (CM) Eknath Shinde had announced a cut in value added tax (VAT) of Rs 5 per litre for petrol and of Rs 3 per litre for diesel.
The price cut was announced by the CM after a state cabinet meeting on July 14. Deputy CM Devendra Fadnavis hailed the decision as a “great relief to Maharashtrian and Marathi Manus”.
After a VAT cut by the Maharashtra government, petrol in Mumbai is being sold for Rs 106.31 per litre and diesel for Rs 94.27. Petrol in Delhi costs Rs 96.72 and diesel Rs 89.62 a litre. Petrol and diesel are priced at Rs 102.63 and Rs 94.24 respectively in Chennai while in Kolkata petrol costs Rs 106.03 and diesel Rs 92.76.
Oil marketing companies are reportedly incurring a loss of Rs 13.08 a litre on petrol and Rs 24.09 on diesel. India meets 80 percent of its fuel needs through imports.
Also Read | Oil edges higher as traders weigh tight market, slowdown fears
Oil climbed at the start of the week as investors weighed signs the market remains tight against concerns about an economic slowdown.
West Texas Intermediate rose above $95 a barrel after capping a third weekly decline on Friday, the longest streak of losses this year. The market has seen bouts of volatility recently, characterised by sharp swings and low liquidity, as traders juggle competing supply and demand outlooks.
The Federal Reserve is expected to approve another big interest-rate hike this week as the central bank combats surging inflation, piling pressure on demand. However, oil consumption may exceed expectations even if the global economy falters, according to veteran commodities trader Pierre Andurand.
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