Petrol, diesel prices fall for 2nd consecutive day as election approaches

Months after continuously raising fuel prices, oil marketing companies (OMCs) have finally relented and started reducing the retail price of petrol and diesel after keeping them steady for 24 days in March. This is the second reduction in petrol and diesel prices in as many days in 2021.

Petrol price fell by 21 paise per litre and diesel by 20 paise per litre in Delhi on Thursday. This has brought down the retail price of petrol to Rs 90.78 and diesel to Rs 81.10 a litre respectively in the national capital.

Across the country as well the petrol and diesel prices fell with the quantum varying depending on the level of local levies in respective states.

In Mumbai and Kolkata, the retail price of petrol fell by 21 and 20 paise per litre respectively and in Chennai by 18 paise per litre on Thursday. For diesel, the prices fell by 19 paise, 20 paise and 22 paise per litre respectively in Chennai, Kolkata and Mumbai.

In Mumbai, petrol is now priced at Rs 97.19 a litre from previous days' price of Rs 97.40 and diesel in the city is now priced at Rs 88.20 a litre from previous price of Rs 88.42 a litre. Premium petrol, however, continues to remain over Rs 100 a litre in the city as is the case with several cities across the country.

According to IANS, oil companies took time to revise petrol and diesel prices downwards as they were covering up for losses incurred on its sale when crude was high and retail prices remained static. Some indications suggest that there was a loss of Rs 4 and Rs 2 per litre on the sale of diesel and petrol respectively earlier that had now been more or less covered.

Earlier on Wednesday, members from various political parties asked the government to reduce central taxes on petrol and diesel and give relief to the common man. Participating in a discussion on the Finance Bill 2021 in the Rajya Sabha, Biju Janata Dal member Sujeet Kumar said the 10-fold increase in cess and surcharge by the Centre in the last couple of years is against the structure of cooperative federalism.

"Increase in cess and surcharge which has increased 10-fold in last couple of years which is not in the spirit of cooperative federalism. In fact, it is a direct assault on federal structure of the country," Kumar said. Aam Aadmi Party MP Narain Dass Gupta raised questions over the government's claim of development.

"If wheels of development are rolling at rapid pace, then why are Maharatna being sold?" Gupta asked. He said while corporate tax has come down to 25 per cent, no concession has been given to partnerships firms and small and medium enterprises. 

Congress member Neeraj Dangi raised the issue of disinvestment and alleged that it will lead to the end of reservations in the country. "Banks will be sold, ports will be sold, airports will be sold, railway stations have already been sold. Entire railways and all government companies who have lakh of acres of land will be sold to the capitalists. Even private partnership is being brought in profitable LIC," Dangi said.