Petrol price is inching towards the Rs-80 mark as it hit Rs 79.64 on Tuesday. This is the highest it has been in two months.
On Tuesday, petrol price in Delhi was hiked by 10 paise a liter to Rs 79.64 while diesel rates went up by 13 paise to Rs 70.62 per liter, according to daily price notification issued by state-owned oil firms. Retail selling prices have been firming up since July 30 as international rates inched up. Rates have risen by Rs 0.90 a liter in case of petrol in nine days, while diesel prices have risen by Rs 0.88 per liter.
State-owned oil firms had in mid-June last year dumped the 15-year practice of revising rates on the 1st and 16th of every month in favor of daily price revisions. High prices have off-and-on triggered demands for a reduction in excise duty but the government had ruled out any immediate cut.
The Centre currently levies a total of Rs 19.48 per liter of excise duty on petrol and Rs 15.33 per liter on diesel. On top of this, states levy Value Added Tax (VAT). The Central Government had raised excise duty on petrol by Rs 11.77 a liter and that on diesel by 13.47 a liter in nine installments between November 2014 and January 2016 to shore up finances as global oil prices fell, but then cut the tax just once in October last year by Rs 2 a liter. Even the state government headed by HD Kumaraswamy had levied taxes on petrol and diesel.