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Fuel Prices Drop After Tax Cut, Centre To Lose Rs 1.4 Lakh Crore A Year

Fuel Prices Drop After Tax Cut, Centre To Lose Rs 1.4 Lakh Crore A Year

In Delhi, petrol rates fell Rs 6.07 to 103.97, while diesel rates declined Rs 11.75 to Rs 86.67.

Petrol, Diesel Price Today: Fuel prices were slashed on Thursday, November 4, across the country after the government reduced excise duty to bring down retail rates from record highs. The Centre's decision came on the eve of Diwali.

In the national capital, petrol rates fell Rs 6.07 to 103.97, while diesel rates declined Rs 11.75 to Rs 86.67, according to Indian Oil Corporation. Petrol and diesel prices on Wednesday had touched an all-time high of Rs 110.04 and Rs 98.42 per litre respectively in Delhi after seven straight hikes.

The step to cut excise duty on fuel prices may cost the government Rs 1.4 lakh crore annually.

In Mumbai, a litre of petrol currently costs 109.98 and diesel is sold at Rs 94.14 per litre. Petrol prices in Chennai moved below the Rs 102 per litre-mark and is currently sold at Rs 101.40 per litre; while diesel rate stood at 91.43. Among the four metro cities, fuel rates are the highest in Mumbai, according to the state-run oil refiner. Fuel rates vary across the states due to value-added tax or VAT.

Here Are The Petrol And Diesel Prices Across Metro Cities:

CityPetrolDiesel
Delhi103.9786.67
Mumbai109.9894.14
Chennai101.4091.43
Kolkata104.6789.79
Source: Indian Oil

State-run oil refiners such as Indian Oil, Bharat Petroleum, and Hindustan Petroleum revise the fuel rates on a daily basis, by taking into account the crude oil prices in the international markets, and the rupee-dollar exchange rates. Any changes in petrol and diesel prices are implemented with effect from 6 am every day.

Globally, oil prices extended declines, pushing U.S. futures below $80 a barrel, after Iran and world powers agreed to resume nuclear talks this month that could lead to the removal of U.S. sanctions on Iranian oil, increasing global supplies. U.S. West Texas Intermediate crude slid for a third day to $79.94 a barrel, down 92 cents, or 1.1 per cent. Brent crude futures for January fell for a second session to $81.19 a barrel, down 80 cents, or 1 per cent.