The marginal increase in the prices of petrol and diesel yet again on Friday has negated the excise cut of Rs 2.50 a litre announced by the government on October 5 in less than a week. In Delhi, petrol prices stood at Rs 82.48 per litre which is an increase of Rs 0.12. While diesel prices were hiked by Rs 0.28 taking it to Rs 74.90. In Mumbai, the petrol and diesel prices were pegged at Rs 87.94 (an increase of Rs 0.12) and Rs 78.51 (an increase of Rs 0.29), respectively, according to price notification by state-owned oil firms.
On Thursday, petrol and diesel prices were Rs 84.19 and Rs 76.47, respectively in Kolkata. In Chennai, petrol was priced at Rs 85.61 per litre while diesel was marked at Rs 78.90 per litre.
Delhi, which did not cut VAT on fuel, still has the cheapest fuel among all the metros and bulk of state capital as it levies lower taxes. Mumbai despite reducing VAT on petrol still has the highest priced fuel.
A finance ministry official on Thursday had said that the government asking state-run oil units to subsidise petrol and diesel prices by Re 1 per litre was a "one-time thing" and it does not intend to ask them to do it again. It is also not looking at bringing back the subsidy sharing mechanism where upstream firms such ONGC subsidised cooking fuels LPG and kerosene by giving discounts on crude oil they sold to refiners.