As part of its fortnightly revision, prices of petrol and diesel fuel have dipped by an appreciable margin. Effective from August 1, 2015, the price of petrol has been slashed by Rs. 2.43 per litre, while the cost of diesel fuel has gone down by Rs. 3.60 per litre. However, note that these price cuts do not take certain local taxes into account.
Petrol price cut by Rs. 2.43 per litre
Since July 1, this has been the third time that prices of these fossil fuels have seen a dip, not that we are complaining. The cost of petrol in Delhi now stands at Rs 64.47 per litre, instead of the earlier Rs 66.90 per litre. Diesel will now cost Rs 46.12 per litre, instead of the earlier Rs 49.72 per litre. On July 16, the base diesel and petrol prices were cut by Rs 2 per litre, although some states, including Delhi, kindly raised local taxes and in effect, nullifying this reduction. Due to this, petrol price in Delhi went up by 28 paise per litre, after taking into account the government’s decision to step up VAT or sales tax on the fuel from 20 to 25 percent.
Diesel price down by Rs. 3.60 per litre
VAT on diesel fuel also increased from 12.5 percent to 16.6 percent. Thus the actual reduction in the cost of this fuel was only 50 paise per litre. Earlier still, on July 1, the price of petrol was cut by 31 paise per litre and diesel by 71 paise per litre. Fuel prices in India are evaluated every fortnight, after considering factors such as fluctuations in international oil markets and USD-INR exchange rates.
P. S. Cost of petrol in Mumbai is down to Rs. 69.51 per litre, while diesel price is now Rs. 51.29 per litre.
– with inputs from PTI