According to sources the petrol prices on Tuesday hit the highest level since the BJP government came to power in 2014, and diesel touched a record high of Rs 63.20 a litre, prompting the oil ministry to seek a cut in excise duty. Meanwhile the petrol price rose to Rs 72.38 per litre in Delhi, highest since March 2014, according to daily fuel price list of state owned oil firms. Rates have risen by Rs 3.31 per litre since mid December.
Accordingly in Mumbai, prices have crossed Rs 80 mark which is the costliest in the country. Presently diesel is being sold at Rs 67.30 in Mumbai, where the local sales tax or VAT rates are higher. According to oil companies since mid December, diesel rates have jumped Rs 4.86 a litre and it has led to the oil ministry asking the finance ministry for a cut in excise duty in the Union Budget 2018-19, to be presented in Parliament next week.
Moreover the October 2017 excise duty cut cost the
government Rs 26,000 crore in annual revenue and about Rs 13,000 crore during
the remaining part of the current fiscal year that ends on March 31, 2018.
