On Tuesday, the prices of petrol and diesel came down in the country for the second consecutive day. This trend of decline has been going on since 12 January. Today, a customer will have to pay less for a litre of petrol and diesel than on Monday.
The petrol price has fallen to a five-month low. Economic activity in China, the world’s largest oil importer, has been sluggish due to the coronavirus pandemic. It is affecting the consumption of crude oil, due to which the prices are coming down.
On Tuesday, the price of one litre of petrol in Delhi, Kolkata and Mumbai has come down by 16 paise. In Chennai, its price has come down by 17 paise. After this, its price has been increased to Rs 71.94, 74.58, 77.60 and 74.73 per litre respectively. Talking about diesel, the price of a litre of diesel in Delhi and Kolkata has come down by 20 paise, in Mumbai by 21 paise and in Chennai, a litre of diesel has reduced by 22 paise. After this, its price has been increased to 64.87, 67.19, 67.98 and 68.50 per litre respectively.
Petrol prices across cities
|City||Petrol prices as on 11 February (in Rs)||Petrol prices as on 10 February (in Rs)|
Diesel prices across cities
|City||Diesel prices as on 11 February (in Rs)||Diesel prices as on 1o February (in Rs)|
Basis of daily petrol, diesel price change
Petrol and diesel prices change at six in the morning every day. The new rates are applicable from 6 o’clock in the morning. After adding excise duty, dealer commission and other costs to the prices, its price almost doubles.
Petrol and diesel prices change daily, depending on what the crude prices are in the international market along with foreign exchange rates. On the basis of these standards, the oil companies do the work of fixing the rates daily.
Out of the amount you pay for retail petrol and diesel, you are paying tax of 55.5% for petrol and 47.3% for diesel.
While there is a nationwide demand to bring petroleum products in the ambit of goods and services tax (GST), governments of states that see high vehicular traffic in the roads would not allow it because of the handsome revenue share they enjoy from the consumption of petrol and diesel by people in respective provinces they rule. Goa had, for example, waived off its share of tax from petrol and diesel but Delhi did not meet a similar demand by the people living in the capital city.
Dealers are the people running the pumps. They sell the petroleum products at retail prices to consumers after adding taxes and their own margins to consumers. Their cost is added to the prices.