Petrol and diesel prices have touched a new high, touching the previous record reached five years ago, in 2013. The price of crude oil, said former finance minister P Chidambaram was US$ 105, as compared to US $ 74 now.
Petrol in Delhi was Rs 74.08 per litre on Friday, April 20. Back in September 2013, the price had touched Rs 74.10 a litre. Other metro cities such as Kolkata, Mumbai and Chennai too witness new multi-year highs at Rs 76.78, Rs 81.93 and Rs 76.85 per litre respectively, the Indian Oil website said.
The previous highs in these cities were Rs 78.03 (Kolkata, August 2014), Rs 82.07 (Mumbai, March 2014) and Rs 76.93 (Chennai, July 2014), said media reports.
Diesel prices also touched new record levels on Friday with prices in Delhi, Kolkata, Mumbai and Chennai at Rs 65.31, Rs 68.01, Rs 69.54 and Rs 68.90 per litre respectively.
The rise was attributed to the ongoing supply cut by the Organisation of the Petroleum Exporting Countries(OPEC) combined with a strong demand for crude oil.
Prices of petrol and diesel are now changed on a daily basis unlike the previous norm of fortnightly revision of prices.
Former finance minister and senior Congress leader P Chidambaram, slammed the Modi government over the steep increase in fuel prices and said it has become clueless and floundering and is living off an oil bonanza. In a series of tweets, the former Finance Minister said the BJP boasts that it is ruling 22 states but why does the NDA government refuse to bring petroleum and petroleum products under GST.
“For the last four years, the BJP government has lived off an oil bonanza. Minus the oil bonanza, the BJP government is clueless and floundering. Even a school child knows the answer. It is because of the ‘Tax the Consumer’ policy of the BJP government,” he said.
Petrol, diesel, natural gas, crude oil and jet fuel (ATF) are currently not included in the GST, which essentially leads to producers not being able to set-off tax paid on inputs from final tax on product.
The price payable by the consumer comprises excise duty and VAT which is different for different states.