Oil ministry gives in-principle nod to launch petrol, diesel futures: ICEX

Fuel price hike LIVE Petrol costs Rs 77.97 in Delhi Rs 85.78 in Mumbai today

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 past year by Rs 2 a litre. Now, three top metro cities are charging you over Rs 71 per litre, as in Mumbai and Chennai the rates are higher than Rs 73 per litre, while Kolkata is just marginally away from joining the club of Rs 72 per litre. However, with worldwide prices stabilising further hikes are now likely to be less in coming days.

The revisions continued till just before the general elections in 2004 when oil companies went slow and after a Congress-led UPA came to power the entire process was reviewed as the worldwide oil prices started moving up.

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. Some are even suggesting to bring petrol and diesel under the GST, hoping that it would reduce taxes -which is now close to 50 per cent- by half.

The government is planning a "holistic strategy" to find "long-term solution" to a spike in petrol and diesel prices triggered by a spurt in worldwide rates, Oil Minister Dharmendra Pradhan said on Monday. There was a time when diesel prices were stuck in the range of Rs 50 to Rs 60 per litre, but since the start of 2018, there is no stopping the rate hikes in this crucial product.

"Given that these revenue if foregone will not impact states fiscal position, we estimate that on an average, states can cut petrol prices by Rs 2.65/litre and diesel by Rs 2/litre, if the entire revenue gain was to be neutralised". Whereas, Mumbai and Chennai saw the most hikes - by as much as Rs 3.59 per litre and Rs 3.62 per litre respectively.

These fuel prices put the United Kingdom 10th among European Union member states for the price of fuel. States charge value added tax that varies from state to state. Central government puts additional tax of Rs 10 on every litre of petrol. He, however, said the ultimate decision regarding this remained with the Petroleum Ministry.

Following the Karnataka polls and the 19-day fuel price freeze from April 24, oil marketing companies opted for a price rise for petrol and diesel. He said that the oil marketing companies operate on a thin margin and they can not do much if the global cost of oil rises.

Related news:

Hot News

isis-killer-beheading-video-story-top Starbucks to close Tuesday afternoon for racial bias training
May 29, 2018 - 18:35
More than 8,000 Starbucks stores will shut down for a few hours Tuesday afternoon so that all employees can receive this training. A guide advises staff to consider whether the actions they take would apply to any customer in the same situation.

isis-killer-beheading-video-story-top Critics Of Liverpool's Goalkeeper Are Not Technical - Fatau Dauda
May 28, 2018 - 19:31
Karius gifted Real Madrid their opening goal, the final goal and also handed the Spanish side their 13th European title. It was a goal that effectively relegated us and Dorus was in floods of tears after the game in the dressing room.

isis-killer-beheading-video-story-top Open thread game five: Houston Rockets versus Golden State Warriors
May 28, 2018 - 19:22
The Warriors have plenty of experience performing in pressure-packed Game 7s and thrive in these conditions. The 22-year-old scored two points and grabbed two rebounds and a steal in four minutes in game six.

isis-killer-beheading-video-story-top Solo: A Star Wars Story is apparently struggling at the box office
May 28, 2018 - 19:18
Below you can see the full Top 10 box office report for the May 25-27 period in the United States and Canada, as relayed by EW . The newest Star Wars movie, Solo , opened this weekend-but it was not the hit that Disney and Lucasfilm would have wanted.

isis-killer-beheading-video-story-top LeBron's epic night forces game 7 in Eastern Final
May 28, 2018 - 17:32
James said earlier this year that he didn't intend to play every game of the season, things just worked out that way. He played the game's first 35 minutes before resting, expending enormous energy to keep the Cavs alive.

isis-killer-beheading-video-story-top Subtropical Storm Alberto continues to lumber northward
May 28, 2018 - 17:15
Later, it cancelled storm surge warnings for most of the Florida peninsula, saying the Panhandle remained the focus of concern. Gusty showers began lashing parts of Florida on Sunday, and authorities were warning of the possibility of flash flooding .

isis-killer-beheading-video-story-top Italy's PM-designate says he will accompany country to new vote
May 28, 2018 - 16:28
Conte gave up on the bid to form a government after President Sergio Mattarella vetoed his choice for economy minister. Some things can not be done in the throes of anger.

isis-killer-beheading-video-story-top Royal wedding guest sells gift bag for almost $30K on eBay
May 26, 2018 - 17:41
There was a final picture taken on the east terrace of Windsor Castle that depicts the smiling couple. Luckily, he had a genius way of keeping them all in check.

Rockets lose ailing Chris Paul, vow to dig in for Game 6
May 26, 2018 - 17:16
The reason for Paul's action was in response to Curry doing the same thing in the midst of a Game 3 blowout win for the Warriors. There was hope that some rest would allow Paul to recover in time for Game 6 , which is set for 8 p.m.

isis-killer-beheading-video-story-top Trump says North Korea summit could still happen
May 26, 2018 - 17:16
Libyan leader Muammar Gaddafi was deposed and killed by NATO-backed militants after halting his nascent nuclear program. Ryan Sheffield, who gave the president an F for his grammar, told Mr Trump he should probably "see me after class".

isis-killer-beheading-video-story-top Three key Champions League final duels
May 26, 2018 - 16:12
To do so Liverpool must end Real's reign as European champions as the Spanish giants go for a 13th European crown in Kiev . By beating them we got some confidence and trust between us to achieve something Madrid had been expecting for 32 years.

isis-killer-beheading-video-story-top Ireland looks set to make history by dumping harsh anti-abortion law
May 26, 2018 - 13:41
The government has proposed to allow abortion in the first 12 weeks of pregnancy with later terminations allowed in some cases. The official referendum vote count isn't expected to be completed until Saturday afternoon local time .

isis-killer-beheading-video-story-top Explosive eruption at Hawaii volcano
May 18, 2018 - 17:32
This is because Kilauea is a so-called shield volcano, which is typically broader in shape and has lava that is relatively fluid. She said the ashfall was localized. "I said, 'I'm surprised you're not getting folks from California, but sure I'll go'".

isis-killer-beheading-video-story-top Samsung Galaxy J6 with Infinity Display Launch on May 21: Features, Specifications
May 18, 2018 - 17:30
The Galaxy J-series will likely continue with the S-Bike mode, Ultra Data-Saving mode as well when it comes to India. Galaxy J6 will have a 2GB, 3GB and 4GB RAM options, along with 32GB and 64GB storage , which will be expandable.

isis-killer-beheading-video-story-top Shots fired at Trump's golf resort in Florida, says police
May 18, 2018 - 17:25
Trump famously criticised former President Barack Obama for playing too much golf during his time in office. The Miami-Dade Police Department is leading the investigation until federal authorities take over.