Petrol stable at Rs 90.93 in New Delhi for third day, diesel at Rs 81.32

Petrol price on Friday remained stable for the third straight day at Rs 90.93 per litre in the national capital and diesel price unchanged at Rs 81.32, according to a price notification from oil marketing companies.

In Mumbai, petrol price stood at Rs 97.34 per litre--the same as yesterday. In Chennai, petrol retailed at Rs Rs 92.97. Diesel was selling at Rs 86.31 in the city. 

In Bengaluru, petrol and diesel prices stayed unchanged at Rs 93.98 and Rs 86.21 respectively.

Last week, petrol prices breached the Rs 90-a-litre mark to touch an all-time high of Rs 90.19 in the national capital after the rate was hiked by 31 paise. Petrol and diesel prices are revised on a daily basis in line with benchmark international price and foreign exchange rates. 

This stability has comes amid an outcry over record high fuel prices.  

Fuel prices have been witnessing an upswing since January, leading to demands for a cut in excise duty.

Yesterday, Pradhan said petroleum products in the country are getting costlier due to rising prices of crude by oil-producing nations.

"In order to earn more profit in the interest of their countries, crude-supplying countries are increasing the prices of crude," said Pradhan while speaking on the rise in the prices of petroleum products like petrol and diesel in India.

He said crude-supplying countries have been requested to desist from the hike in crude prices as it directly affects consumers. They have created an artificial increase in the interest of their own country, he added.

"Arbitrarily, you cannot hike the prices as it affects consuming countries," he said in reference to oil-producing countries.

The increase in fuel prices has been criticised by the opposition parties such as the Congress that said that the Narendra Modi government should have cut excise duty to ease consumer pain.

Central and state taxes make up for 60 per cent of the retail selling price of petrol and over 54 per cent of diesel. 

On Thursday, Union Finance Minister Nirmala Sitharaman admitted that both the Centre and state needed to talk in a way to reduce burden on petrol and diesel consumers.

"If eventually, we want the consumer not to be bearing so much of the burden, it is the Centre and states that have to talk... Let's see what we can do," said Sitharaman while interacting with students and faculty at an event organised by the JSW School of Public Policy at the Indian Institute of Management (IIM) Ahmedabad.

"I strongly believe it is no longer competitive (between Centre and state). If the end consumer should pay less and I agree the burden should be less on them, it is no longer a competition between Centre and states," she added.

Last week, Sitharaman had said the Centre and state governments will have to together work out a mechanism to bring retail rates to reasonable levels.

"This is a very vexatious issue. An issue in which no answer except reducing the price (of fuel) will convince anyone. I know I am treading on an area and whatever I may say, to bring in the reality into picture, will only sound like I am obfuscating." "I am avoiding my answer. I am shifting the blame," she said addressing a gathering at an event organised by the Chennai Citizens' Forum.

She went on to explain the tax structure and how production cuts by oil cartel OPEC and its allies had led to a rally in the international oil prices, leading to a hike in retail rates in India. She, however, said the answer may lie in bringing petrol and diesel under the Goods and Services Tax (GST) regime, which will end the cascading impact of taxes and bring uniformity.

Currently, the central government levies a fixed rate of excise duty while states levy different rates of VAT. Under GST, the two would merge and bring uniformity, solving the problem of fuel rates being higher in states with higher VAT.

On Tuesday, Pradhan urged Goods and Services Tax (GST) Council to bring petroleum products under GST purview as early as possible.
 

In an interview, he said, "From day one I have been urging GST Council to bring petroleum under GST purview. We are continuously urging the council and today again I am requesting GST Council to consider our demand."

He mentioned that if the GST Council decides to bring petroleum products under GST purview, it will be a big relief for common man. It will also be very helpful for the growth of the oil and gas sector.
 

Earlier, he had ruled out any cut in excise duty, for now, to give relief to consumers from the spiralling retail prices of petrol and diesel which have touched all-time highs.