Petrol & Diesel Fuel Price Increased in India: Fuel prices recently witnessed a rapid rise with considerable increase in crude oil prices around the world. Diesel prices have gone up in most states of the country and rise in petrol prices were also considerable when compared to the prices seen few months back.
The first reason for this increase was the shutdown of refineries in US due to hurricane related problems while this time, increase in demand as well as production cut by organisation of petroleum exporting countries and Russia.
As petrol and diesel are not included into the GST slabs, prices vary from state to state. Many major cities of India are getting petrol for a price considerably higher than INR 73. This makes it the highest selling price ever in last 4 years!
Petrol Price Per Litre on April 2, 2018
Fuel Price Increased in India
Diesel Price Per Litre on April 2, 2018
Fuel Price Increased in India
Central government had issued an excise cut of INR 2 to keep the rising prices under check but still, buyers are paying almost double the actual price of the fuel. Maharashtra and Gujarat even reduced the local taxes to counter the effect of increase in price of fuel up to some extent.
Commuter would have felt lesser hike heat in these two states. Revenue of a state government is highly dependent on these two fuels and getting them right into the GST bracket can bring a huge change in their overall plans.
Almost half of the price paid at a fuel pump goes to the government in present scenario. The fuel prices will only go down if the OPEC decides to remove their 1.8 million barrel per day cut as that shortens supply and increases the crude oil price.
Once under GST, government could bring down the price by a large margin but who knows, they could also bring a higher GST bracket specially for the fuel.
Fuel Prices Source: https://www.iocl.com/
