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Petrol, diesel prices rise again after two days, Oil minister wants fuel under GST law

While the three metro cities bear the brunt of rising global crude oil prices, Kolkata saw a decline in fuel prices as poll-bound West Bengal reduced the reduction in VAT by Re. 1 on February 20.

February 23, 2021 / 02:09 PM IST

After retail fuel prices remained stable for two consecutive days in metro cities, the streak has been broken by an upward climb in the price on February 23.

The petrol price in Delhi was hiked by 35 paise reaching Rs. 90.93 per litre as compared to Rs 90.58 per litre on February 21 and February 22, according to state-owned fuel retailers. Diesel price in the national capital also touched a new high at Rs 81.32, also increasing 35 paise from the two previous days.

In Mumbai, the prices rose to Rs 97.34 per litre, an increase of 34 paise  and Rs 88.44 per litre, 38 paise more from February 22, for petrol and diesel respectively.

Meanwhile, automobile owners in Chennai shell out Rs 92.90 per litre and Rs 86.31 per litre of petrol and diesel. While the three metro cities bear the brunt of rising global crude oil prices, Kolkata saw a decline in fuel prices as poll-bound West Bengal reduced the state VAT by Re. 1 on February 20. The prices in Kolkata reach Rs 91.12 per litre for petrol, a reduction of 66 paise from price of Rs. 91.78 on Monday and Rs 84.20 per litre for diesel, 36 paise lower from yesterday.

Nagaland also slashed the rate of tax on petrol and other motor spirits on Monday (February 22) reducing from 29.80 percent to 25 percent per litre or from Rs 18.26 to Rs 16.04 per litre (whichever is higher). Tax on diesel was reduced from 17.5 percent to 16.5 percent or from Rs. 11.08 per litre to Rs. 10.51 per litre (whichever is higher).

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Nagaland became the fifth state to reduce the tax on fuel after Rajasthan, Meghalaya, Assam and West Bengal.

"Due to an increase in prices of crude oil in international markets, consumer price (for petrol & diesel) has risen," Union Petroleum Minister Dharmendra Pradhan said. "This will soften gradually. Global supply was reduced due to COVID in turn affecting production as well."

He added that the he is consistently requesting the GST council to include petroleum products under its purview as it will benefit people. "But it is their call to take," he said.
Moneycontrol News
first published: Feb 23, 2021 08:21 am

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