Petrol, diesel prices start rising again

Finance minister Arun Jaitley announced a cut of Rs 2.50 in the price of petrol

Recently, the BJP government announced a Rs 2.50 per litre reduction in prices of petrol and diesel. In Mumbai, petrol prices were hiked by 18 paise to Rs 87.15. The rate of petrol has been hiked by Rs 0.14 in the four metros. Diesel prices went up by almost 30 paise and petrol prices increased by nearly 20 paise.

Mr. Gandhi has been been attacking the government over high petrol and diesel prices and the falling value of rupee. This happened due to the Rs 1.56 relief on diesel prices announced by the state government on Friday. Fuel rates saw a marginal increase after excise duty cut by Centre, VAT reduction by BJP-ruled states and Re 1 price cut by oil marketing companies coming into effect.

The government had on Thursday reduced the fuel prices by Rs 2.50 per litre, out of which the Centre has slashed Rs 1.50 in excise duty and the remaining Re 1 will be absorbed by the oil marketing companies.

They were later joined by Chhattisgarh, Jharkhand, Tripura, Uttar Pradesh, Madhya Pradesh, Himachal Pradesh, Haryana Assam, Uttarakhand, Goa and Arunachal Pradesh with similar moves. The Maharashtra government had Thursday reduced the prices of petrol by Rs 2.50 per litre.

Rising fuel prices have become a political controversy in India, with attention specifically focused on the high taxes that the Centre charges.

While the government's decision to cut taxes on petroleum products is a positive change, the move's impact could be limited if the crude price in the global market continues to go up and the rupee falls in near future. For the remainder of current fiscal, it would be Rs 4,500 crore, with IOC's share being roughly half and the rest is split equally between HPCL and BPCL.

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