Cars, buses are the latest commodity to feel the heat as fuel prices go up for the tenth consecutive day. For ten consecutive days since August 15 up to September 4 this year, prices of both petrol and diesel in India went up again and reached new record levels.
The state-operated oil companies increased the selling price of petrol by 16 paisa per liter and diesel by 19 paisa per liter. This consistent rise is attributed to the increase in the prices of global crude oil and the declining value of the rupee.
Petrol and Diesel Price List in India: October 14, 2021
- Delhi: The petrol price is ₹79.31 per liter, and the diesel price is ₹71.34 per liter.
- Mumbai: Petrol is at ₹86.72 per liter, while diesel is at ₹75.74 per liter.
- Chennai: The price of petrol is ₹82.41 per liter, while diesel is ₹75.39 per liter.
- Kolkata: As of now, the price of petrol is ₹82.22/liter and of diesel is ₹74.19/liter.
Global Factors: Effect of Crude Oil Price and Rupee Fluctuation
The prices of fuels in India tend to have a direct relationship with the global crude oil price, along with the value of the rupee. Petrol and diesel are retail prices of auto fuels; however, they are generally associated with crude oil prices. Recently, the international crude oil price has become stable, and at the same time, the rupee has depreciated, which has forced the government to increase the prices of petrol and diesel like never before.
Effects on India’s Economy
Any rise in world crude oil prices affects the Indian import costs and trade balance greatly. A one-dollar rise in oil prices can have an impact on the import bill, which could be as high as ₹10,700 crore per year. This scenario puts much pressure on the economy and results in various demands for balancing.
Demands for Making Fuel Subject to GST
Since petrol and diesel prices differ from state to state because of local taxes, there have been calls for inclusion in the goods and services tax (GST).
Senior Congress leader and former Finance Minister P. Chidambaram noted that the consistent fuel price increase is caused by taxes and suggested that applying GST to petrol and diesel can lead to their price decrease.
Also Read:
