Petrol, Diesel prices today: Fuel prices static despite sharp fall in global oil rates


The state-run oil marketing companies (OMCs) have not increased the prices of petrol and diesel on Sunday, November 28, 2021, amid a sharp decline in crude oil prices in the international market. West Texas Intermediate oil, the U.S. benchmark, saw the biggest decline since April 2020 to $70 a barrel. The price of Brent crude also tumbled to $72 a barrel.

The central government had slashed the excise duty on petrol and diesel by Rs 5 and Rs 10, respectively, to bring down retail rates from record highs. Following this, as many as 25 NDA-ruled states announced the reduction of VAT on petrol and diesel. There has been no change in the rates of petrol and diesel for more than three weeks now after the Central government announced an excise cut on the two fuels on the eve of Diwali.

The prices of petrol and diesel were last revised on November 4 after the excise duty on the two key fuels was slashed. According to the Indian Oil Corporation, petrol is retailing at Rs 103.97 per litre in the national capital. In Delhi, a litre of diesel costs Rs 86.67. Petrol is available at Rs 109.98 per litre in Mumbai and people have to shell out Rs 94.14 for a litre of diesel. The rates of petrol and diesel are the highest in Mumbai among all the four metro cities.

In Tamil Nadu’s capital, Chennai, the cost of petrol and diesel stands at Rs 101.40 and Rs 91.43 per litre, respectively. Petrol is retailing at Rs 104.67 per litre in Kolkata and diesel costs Rs 89.79 per litre today.

At present, fuel rates are the cheapest in Port Blair, where one litre of petrol and diesel costs Rs 82.96 and Rs 77.13, respectively.

These opposition states have announced VAT cut

Rajasthan, Chhattisgarh and Punjab are the three Congress-ruled states that have slashed VAT on petrol and diesel. In Punjab, petrol and diesel prices were reduced by Rs 16.02 and Rs 19.61 per litre, respectively, as a result of the combined impact of excise duty and VAT cuts.

On November 16, Rajasthan Chief Minister Ashok Gehlot announced that the state cabinet had decided to reduce VAT on petrol and diesel prices by Rs 4 and 5, respectively. Following suit, the Chhattisgarh government also announced a reduction of VAT on petrol and diesel by 1 per cent and 2 per cent, respectively.

Fuel rates likely to drop further

In another good news, the prices of petrol and diesel may come down further as the Centre has agreed to release five million barrels of crude oil from its Strategic Petroleum Reserves. On Tuesday, Petroleum Minister Hardeep Singh Puri chaired a meeting with top ministry and officials of oil marketing companies in Delhi. The decision was taken after the US reached out to India and other major oil consumers to release their strategic petroleum reserves to temper rallying crude oil prices.

Petrol, diesel prices in major Indian cities

CITY PETROL (PER LITRE) DIESEL (PER LITRE)
NEW DELHI Rs 103.97 Rs 86.67
KOLKATA Rs 104.67 Rs 89.79
CHENNAI Rs 101.40 Rs 91.43
MUMBAI Rs 109.98 Rs 94.14
HYDERABAD Rs 108.20 Rs 94.62
BANGALORE Rs 100.65 Rs 85.08
PATNA Rs 105.92 Rs 91.09
BHOPAL Rs 107.23 Rs 90.87

Fuel prices are revised by OMCs like Indian Oil, Bharat Petroleum and Hindustan Petroleum based on international prices in the preceding 15 days and foreign stock exchanges. The prices of petrol and diesel vary from state to state and also in cities, depending on the incidence of local taxes like value-added tax (VAT) and freight charges. Apart from this, the central government charges an excise duty on petrol and diesel. The oil marketing companies update the prices of petrol and diesel every day at 6AM.

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