Published: Tue, September 04, 2018
Money | By Bruce West

Petrol price to rise by 5 cents

Petrol price to rise by 5 cents

External factors: The exchange rate - that is the price of the dollar vs the rand.

This takes the global price of crude oil and the value of the rand against the dollar into account.

The price of petrol increased by Rs 0.31 per litre while that of diesel was hiked by Rs 0.39 per litre.

In Delhi, the petrol price is at Rs 79.15/litre (increase by Rs 0.31/litre) and diesel at Rs 71.15/litre (increase by Rs 0.39/litre).

The appreciation of dollar against rupee has also pushed up rates for compressed natural gas (CNG) as well as piped natural gas (PNG) since the price of gas procured by city distributors is mostly dollar-denominated.

Fuel rates have been on fire since mid-August, rising nearly every day due to a combination of a drop in rupee value and rise in crude oil rates. Similarly, petrol is being sold for ₹82.41 per litre in Chennai and the diesel retail price is ₹75.39 per litre.

He said that the relentless rise in prices of petrol and diesel is not inevitable because the price is built up by excessive taxes on fuel. "This unsuccessful government should take some measures to curb the prices", Vohra said. The Centre now levies an excise duty of Rs 19.48 per litre on petrol and Rs 15.33 on diesel.

In a media statement, the department said that South Africa had witnessed "sustained increases in fuel prices for the past few months, which placed a strain on the consumers". "This is further hurting Asian currencies", the official said.

The recent slump in rupee also has lifted the import cost of crude oil, subsequently raising fuel prices.

Nearly half of the fuel price is made up of taxes. There is a pressure on oil prices due to decrease in production.

"The government can not disturb fiscal maths by cutting excise duty", he said. Delhi charges a Value-Added Tax of 27% on petrol and 17.24% on diesel. The cost of petrol in Delhi went up Rs 1.64 per litre, Mumbai Rs 1.63, Chennai Rs 1.72 and Kolkata Rs 1.61 per litre.

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