Petrol and diesel prices fell substantially in numerous states on Friday, as more states announced VAT cuts in response to the Centre’s decision to reduce fuel excise duty.
The cut in excise duty by the Centre, followed by VAT reductions in various states, has resulted in a dramatic decline in petrol and diesel prices, which had hit an all-time high.
Fuel prices are influenced by a number of things. These factors include the rupee-to-dollar exchange rate, crude oil prices, global cues, and gasoline demand, among others. When global crude oil prices rise, India’s prices rise as well. Excise duty, value-added tax (VAT), and dealer fees are all included in the price of gasoline. The value-added tax (VAT) varies by state. The retail selling price of gasoline roughly doubles when excise duty, dealer commission, and VAT are factored in.
While some experts believe that gasoline and diesel prices will continue to climb as global crude oil prices firm, the recent price decrease is expected to give much-needed relief to consumers and businesses.
On the eve of Diwali, the national government announced a petrol excise duty drop of Rs 5 per litre and a diesel excise duty cut of Rs 10 per litre.
Petrol currently costs Rs 103.97 per litre in Delhi and Rs 109.98 per litre in Mumbai as a result of the decrease. In Kolkata, it has been dropped to Rs 104.67 per litre, and in Chennai, it has been reduced to Rs 101.51 per litre.
Petrol prices have dropped dramatically in certain places, including Bengaluru (Rs 100.58/litre), Gurugram (Rs 95.90/litre), Noida (Rs 95.36/litre), and Lucknow (Rs 95.28/litre), following VAT reductions by some states.
While the price of petrol in Assam was 94.58 per litre on November 5 and the price of diesel was 81.29 per litre. However, the price of petrol in Shillong Meghalaya was (99.28/litre) on November 5, 2021, while the price of diesel was (85.75/litre).
