Drivers pay €100 a year more for fuel, new hikes coming

Drivers pay €100 a year more for fuel, new hikes coming

Drivers pay €100 a year more for fuel, new hikes coming

It is being sold at Rs 79.71 in Bangalore, Rs 82.62 in Trivandrum, Rs 82.80 in Srinagar, Rs 80.10 in Jammu, Rs 78.58 in Shimla, Rs 83.89 in Patna, Rs 78.82 in Lucknow, Rs 81.22 in jaipur, 83.08 in Hyderabad, Rs 80.66 in Guwahati, 81.45 in Gangtok, Rs 75.43 in Chandigarh and Rs 84.06 in Bhopal. The prices are raised by 15 paisa in Kolkata, Mumbai and by 16 paisa in Chennai.

If this was the case, diesel prices could further reduce by Rs 3.75 a litre and petrol prices by Rs 5.75 per litre, it said. Apart from global oil prices, weakness in the rupee against the dollar pushes up domestic fuel prices as India meets more than 80 per cent of its fuel requirements through imports, determined by the dollar.

Fuel prices on Monday touched a new high with petrol at Rs 78.27 and diesel at Rs 69.17 in Delhi. Whereas, Mumbai and Chennai saw the most hikes - by as much as Rs 3.59 per litre and Rs 3.62 per litre respectively.

"The Petroleum and Natural Gas Ministry has given an in-principle nod to launch petrol and diesel futures contracts and we are hoping that Sebi will give final approval in this regard soon", ICEX Managing Director and Chief Executive Officer Sanjit Prasad told PTI. However, Bihar Deputy Chief Minister Sushil Kumar Modi on Sunday said that "it is a big misconception (among the people) that price of petroleum products will be reduced significantly if they are brought under GST ambit".

The higher prices mean the average driver is now shelling out €100 more for petrol this year than they did over the course of last year.

He also said that the weakening of the Indian rupee against the United States dollar was causing the fuel price hike. The government had raised excise duty on petrol by Rs 11.77 a lire and that on diesel by 13.47 a litre in nine instalments between November 2014 and January 2016 to shore up finances as global oil prices fell, but then cut the tax just once in October previous year by Rs 2 a litre.

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"However, if this was to happen, the state will have to forego Rs 34,627 crore of tax revenue / 0.2% of consolidated fiscal deficit of states", said Ecowrap.

Across all forecourts, the average was even higher with prices rising by almost 8.5p a litre.

After moving to daily revision of fuel prices in June last year, the government had cut basic excise duty on petrol and diesel by Rs 2 per litre in October last year.

These fuel prices put the United Kingdom 10th among European Union member states for the price of fuel.

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