The fuel prices in India fell down to a new low, when the prices for both petrol and diesel were deducted by Rs. 2 per liter each. Post the deduction, the new fuel prices in Delhi are Rs. 61.33 per liter for petrol and Rs. 50.51 per liter for diesel, as opposed to the earlier prices of Rs. 63.33 a liter for petrol and Rs. 52.51 a liter for diesel.
The fall in fuel prices is in a direct connection to the slump in international oil prices, which are at the lowest when taken the past five years into consideration. The rates, however, differ from state to state due to variation in local sales tax/VAT.
Since the month of August 2014, this is the eight consecutive deduction in petrol prices. Also, after the decision of government of deregulation of diesel in October, this is the fourth straight reduction in diesel prices. Since August, petrol prices have fallen down by Rs. 12.27 per liter, while the diesel prices have slumped down by Rs. 8.46 per liter post the deregulation of diesel.
However, the prices could have gone down even further, if the Indian Government hadn’t raised the excise duty on petrol and diesel by Rs. 2.25 per liter and Re. 1 per liter respectively.
By raising the excise duties on both the fuels, the Government has been successful in garnering huge revenues of up to Rs. 10,600 crore.
If the Government hadn’t raised the excise duty on November 15, the prices could have gone down more for both the fuels by Rs. 1.50 a liter.
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