Petrol, Diesel to soon cost less in Delhi

Petrol, Diesel to soon cost less in Delhi

Petrol prices in Delhi at Rs 71.72 a litre as compared to Rs 71.15 in Ghaziabad and Rs 71.28 in Noida. A litre of diesel in the national capital is priced at Rs 66.39 as opposed to Rs 65.31 in Ghaziabad and Rs 65.44 in Noida.
While the slump in international oil prices has led to an almost equal reduction in base price of petrol and diesel across the country, the actual cut in rates differs from state to state depending on local VAT.
Retail pump price is calculated after adding central excise duty, dealers commission and VAT to the base price. While excise duty is fixed at Rs 17.98 per litre in case of petrol and Rs 13.83 a litre in diesel and do not change with any variation in base price, the incidence of VAT in most states changes as the levy is ad valorem or a percentage of the total of the base price plus central excise duty.
According to price notifications, Delhi levies a VAT of 27 per cent on petrol. The same on diesel is 16.75 per cent plus Rs 250 per kl air ambience charge.
VAT on petrol in Uttar Pradesh is 23.78 per cent or Rs 14.41 a litre, whichever is higher. In case of diesel, VAT is 14.05 per cent or Rs 8.43 a litre, whichever is higher.
Sources said when rates are falling, VAT in Uttar Pradesh is levied on fixed per litre term because that is higher than ad valorem rate. And so the reductions in the states have been smaller when compared with Delhi.
The Union government on October 4, slashed the petrol and diesel price by Rs 2.50 by reducing excise duty and asking state-owned oil firms to bear subsidy. This was matched by several states which reduced local sales tax or VAT.
Petrol price has been cut by Rs 11.11 per litre and diesel by Rs 9.3 in Delhi in the past six weeks in step with the reduction in international oil rates.
Rates have been on the decline since October 18. This has wiped off all of the price hike on petrol and diesel in two months beginning August 16.
Petrol price had touched a record high of Rs 84 per litre in Delhi and Rs 91.34 in Mumbai on October 4. Diesel on that day had peaked to an all-time high of Rs 75.45 a litre in Delhi and Rs 80.10 in Mumbai.
Prices had started to climb from August 16. Petrol in Delhi was priced at Rs 77.14 per litre and in Mumbai, it cost Rs 84.58 on August 15. Diesel on that day was priced at Rs 68.72 per litre in Delhi and at Rs 72.96 in Mumbai.
Subsequent to this, the petrol price came down to Rs 81.50 per litre in Delhi and diesel to Rs 72.95 a litre on October 5. In Mumbai, rates fell to Rs 86.97 per litre for petrol and Rs 77.45 in case of diesel.
As the international oil prices continued to rise, the price of petrol and diesel in Delhi increased to Rs 82.83 and Rs 75.69 on October 17. In Mumbai, rates touched Rs 88.29 a litre for petrol and Rs 79.35 for diesel.



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