In a major relief for consumers, petrol prices have been slashed by 40-42 paise per litre on Saturday, and diesel price was also cut down by 30-32 paise per litre today. The continuing petrol price slash has taken the price reduction toll to over Re 1 in the four major metros i.e., Delhi, Kolkata, Mumbai and Chennai. According to the new rate chart, petrol price in Delhi now stands at Rs 77.02, in Mumbai Rs 84.84, in Kolkata Rs 79.68 and in Chennai Rs 79.95 on Saturday i.e June 9, data from IOC website showed. In case of Diesel, one litreretailed at Rs 68.28 in Delhi, Rs 70.83 in Kolkata, 72.7 and Rs 72.08 in Chennai.
Most notably, prices have been cut for 11 consecutive days and it is the biggest reduction since prices soared on May 29. In the last 11 days, petrol price have fallen by Rs 1.41 in Delhi, Rs 1.38 in Kolkata, Rs 1.4 in Mumbai and Rs 1.48 in Chennai. The revised rates are applicable from 6:00 a.m. on June 9, 2018.
However, the slash in petrol prices comes after 16 consecutive days of Karnataka elections. Between May 13 and May 29, petrol prices in the four metros soared by Rs 3.8 in Delhi, Rs 3.74 in Kolkata, Rs 3.76 in Mumbai and Rs 4 in Chennai, data from IOC website showed.
Even as the government mulls various alternatives to provide relief to the common man from soaring fuel prices. Industry body Assocham has said that reducing taxes is the best solution to check the spurt in fuel prices which would also tremendously help India on the exports front. However, according to a recent Moody’s report, any excise duty cut will weigh on India’s sovereign credit profile. According to the global credit rating agency, any reduction in the excise duty on petroleum and diesel products in view of high crude oil prices, would exert negative pressure on India’s sovereign credit profile.
As an alternative to cutting excise duty, the government is also reportedly mulling to ask state-run ONGC to share a part of the burden. Earlier this week, oil minister Dharmendra Pradhan had voiced optimism that petroleum products will be brought under the GST purview that will help in checking volatility in fuel prices. “In the long run, petroleum products are bound to be included within the ambit of the GST regime. It is only a matter of time. It will immensely help in containing prices of petrol and diesel,” Pradhan told reporters in Bhubaneswar on Thursday.
