Fuel prices have fallen for the 13th day straight. While the diesel prices took a fall by 15 paise, petrol prices fell by 20 paise across all the major cities. Petrol prices have come down to Rs.79.25 in Kolkata, Rs.76.58 per litre in Delhi, Rs.79.48 in Chennai, and Rs.84.41 in Mumbai. The diesel prices, on the other hand, have dipped to Rs.67.95, Rs.70.50, 72.35, and Rs.71.73 in Delhi, Kolkata, Mumbai, and Chennai, respectively.
The petrol prices in Gurgaon and Noida have plunged to Rs.77.11 per litre and Rs.77.42 per litre, respectively while the diesel prices have fallen to Rs.68.85 per litre and Rs.68.14 per litre, respectively in both the cities. The diesel price in Ghaziabad is currently at Rs.68.01 per litre.
The previous 16-day increase in fuel prices was due to the overall surge of crude oil prices globally. The current fall in crude prices is the direct result of the pressure on the government to reduce excise on petrol and diesel. Presently, an excise duty of Rs.19.48 per litre and Rs.15.33 is applicable on petrol and diesel, respectively.
The government has been thinking of various strategies to bring relief to all the vehicle owners from the surge in crude prices. The Associated Chambers of Commerce of India (ASSOCHAM), to aid the exports industry as well, has said that reducing the tax on fuel would be one of the best solutions against the increase in fuel prices. However, a recent report released by Moody’s shows how any cut in fuel excise would have a negative impact on the country’s overall credit profile.